Federal Bank Q3 results: Profit jump 25% to R 1,007 crore; stock tanks 3%; here's what CEO says

Federal Bank on Tuesday reported a 25.24 per cent year on year (YoY) rise in net profit at Rs 1,007 crore for the December quarter compared with Rs 804 crore in the same quarter last year, thanks to a 61 per cent jump in other income. Net interest income (NII) for the quarter came in at Rs 2,123 crore, up 8.48 per cent YoY over Rs 1,957 crore in the corresponding quarter last year.

Other income surged 61.61 per cent to Rs 863 crore against Rs 534 crore YoY. The private bank said its fee income for the quarter rose to Rs 642 crore from Rs 543 crore in the same quarter last year. Following the results announcement, the stock fell more than 3 per cent to hit a low of Rs 148 on BSE, before recovering some ground.

Total business of the bank touched Rs 4,38,776 crore, up 18.72 per cent. Total deposits rose to Rs 2,39,591 crore as on December 31, 2023 from Rs 2,01,408 crore as on December 2022. On the asset side, net advances increased from Rs 1,68,173 crore to Rs 1,99,185 crore. Managing Director & CEO Shyam Srinivasan said: “I am pleased that our team's dedicated effort has helped us register an all time high net profit of Rs 1,007 crore, a significant milestone in the journey of any organization which is dedicated to both growth and excellence.""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," he said. Retail Advances grew 20.39 per cent to Rs 65,041 crore. Business banking advances grew 17.80 per cent to Rs16,679.75 crore.

Commercial Banking grew 25.99 per cent to Rs 20,773.55 crore while corporate advances registered a growth of 14.38 per cent to Rs 71,978 crore. The CV/ CE advances grew 66.06 per cent to reach Rs 3,057 crore. Gross NPA of the bank as at the end of Q3FY23 stood at Rs 4,628.79 crore, which as a percentage to gross advances stood at 2.29 per cent.

The net NPA and net NPA as a percentage to net advances as on December 31 stood at Rs 1,284.37 crore and 0.64 per cent, respectively. Also read: Also read: Also read:.