Federal Bank Q2 Result: Net Profit Increases 36%, NII Touches Record High Of Rs 2,056.42 Crore

The bank logged a net profit of Rs 953.82 crore for the September quarter in the current financial year against a net profit of Rs 703.71 crore in the second quarter of the previous fiscal year.

Federal Bank posted a 35.54 per cent increase in its standalone profit on a year-on-year (YoY) basis in its second quarter (Q2) earnings on Monday. It logged a net profit of Rs 953.82 crore for the September quarter in the current financial year (FY24) against a net profit of Rs 703.71 crore in the second quarter of the previous fiscal year (FY23), as revealed in an exchange filing.

The bank reported it's Gross Non-Performing Assets (GNPAs) fell to 2.26 per cent at the end of the second quarter in the current fiscal year, against 2.46 per cent reported in the corresponding period a year earlier. It's Net Non-Performing Assets (NNPAs) were down to 0.64 per cent in Q2FY24, compared to 0.78 per cent stated in the same quarter a year ago. NPAs are loans or advances issued by the bank which are subject to late repayment or unlikely to be repaid by the borrower in full. 

The Net Interest Income (NII) of the private lender grew nearly 17 per cent to a record high of Rs 2,056.42 crore in the second quarter of the current financial year, up from Rs 1,761.83 crore logged in the same period last year. NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. 

The bank’s provisions for bad loans and contingencies for Q2FY24 stood at Rs 44 crore, against Rs 268 crore reported in the corresponding period a year earlier, reported PTI. The lender’s net worth climbed to Ra 26,032.07 crore as of the end of September in the current fiscal year, compared to Rs 19,617.82 crore in the same period last year. 

Commenting on the results, Shyam Srinivasan, managing director and CEO of Federal Bank, said, “The Q2 Results are a sigma of many of our initiatives coming together well and has helped us deliver our highest ever profits. Some of the marquee investments we raised in Q2 are a true testimony to our governance, social and environmental commitment standards. We are pleased to deliver on our commitments made to them and do stay determined to make continued progress on all our chosen areasin pursuit of our vision of being the Most Admired Bank.”