Federal Bank’s Q3 net profit up 25% at Rs1,007 crore

Private sector lender Federal Bank has reported a 25 per cent year-on-year increase in its fiscal third quarter (October-December 2023-24) at Rs1,007 crore, against Rs803.6 crore in the comparable quarter of the previous fiscal.

Net interest income of the bank increased by 8.5 per cent to Rs2,123.4 crore during the quarter compared to Rs1,956.5 crore in the year-ago quarter. Net interest margin during the quarter, however, was lower at 3.19 per cent, against 3.22 per cent in the similar quarter of the previous fiscal.

Gross non-performing assets of the bank stood at Rs4,628.79 crore at the end of Q3FY24 against Rs4,436.05 crore in Q2FY24 - an increase of 3 basis points to 2.29 per cent, from 2.26 per cent quarter-on-quarter.

Net non-performing assets also rose 4.4 per cent in Q3FY24 to Rs284.37 crore from Rs1,229.81 crore in the previous quarter.

“With an increase of over 100 branches in the past calendar year and a similar number planned for this year, our growth trajectory is well poised to sustain this positive momentum. As we grow and diversify across products, segments, and geography, we are further inspired to deliver on our purpose for existence, which is to be the Most Admired Bank in India,” Shyam Srinivasan, managing director and CEO of the bank, said.

The bank currently has 1,418 branches and 1,960 ATMs (as of 31 December 2023).