Federal Bank announced a net profit of Rs 1,007 crore for the December quarter of the financial year 2023-24. This marks a significant 25 percent increase from the Rs 803.6 crore reported in the same period the previous year, surpassing market estimates of Rs 945.5 crore.
Improved Asset Quality
The bank’s gross non-performing asset (NPA) reduced to 2.29 percent, down from 2.43 percent in the same quarter last year. The net NPA also saw improvement, standing at 0.64 percent compared to 0.73 percent in the previous year.
Insights from the CEO
Shyam Srinivasan, Managing Director & CEO of Federal Bank, expressed satisfaction with the team’s efforts leading to an all-time high net profit. He highlighted the bank’s growth with an increase of over 100 branches in the past year and similar plans for the current year.
Strategic Growth Initiatives
Srinivasan emphasized the bank’s commitment to growth and excellence. With a focus on diversification across products, segments, and geography, Federal Bank aims to become the Most Admired Bank in India.
Strong Deposit Growth
The total deposits of the bank saw a substantial increase, reaching Rs 239,591.16 crore from Rs 201,408.12 crore in the previous year.
Robust Operational Performance
The net interest income (NII) also exhibited growth, reaching Rs 2,123.36 crore. This represents an 8.53 percent increase compared to Rs 1,956.53 crore reported in the corresponding quarter of the previous fiscal.
Network Expansion
As of December 31, 2023, Federal Bank operates through 1,418 branches and 1,960 ATMs/Recyclers. The bank’s expansion strategy positions it well for sustained positive momentum.
