Federal Bank reports 35.5% YoY rise in Q2 net profit to Rs 954 crore; NII up 17%

Federal Bank Q2 results: Federal Bank on Monday, October 16, reported a 35.5 per cent year-on-year (YoY) increase in its standalone net profit at Rs 953.82 crore for the quarter ended September 30, 2023 (Q2FY24). In the year-ago period, the figure stood at Rs 703.71 crore. The total income of the lender came in at Rs 6,185.7 crore, up 33.5 per cent against Rs 4,630.3 crore in the corresponding quarter of the previous fiscal.

Net interest income (NII) came in at Rs 2,056 crore, up 16.68 per cent YoY. NII is the difference between interest earned and interest expended. Zee Business Research had estimated NII to come in at Rs 2,000 crore, while the net profit was seen at Rs 840 crore.

Gross non-performing assets (NPAs) decreased from 2.38 per cent to 2.26 per cent QoQ, while net NPA decreased from 0.69 per cent to 0.64 per cent QoQ. Provisions, too, decreased to Rs 44 crore from Rs 268 crore logged in the year-ago period. On a sequential basis, provisions stood at Rs 44 crore against Rs 156 crore seen in the previous quarter. 

Commenting on the results and financial performance, Mr Shyam Srinivasan, Managing Director & 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, and social and environmental commitment standards. We are pleased to deliver on our commitments made to them and stay determined to make continued progress in all our chosen areas in pursuit of our vision of being the Most Admired Bank."

Shares of the company hit their record high of Rs 152.55 apiece on the BSE.