Major private banking player, surged above 8 percent following a 10.4 percent year-on-year growth in net profit and a drop in non-performing assets in Q2 FY25.
Share price variations:
With a market capitalization of Rs. 48,860.84 crores, The Federal Bank Ltd. made an intraday high of Rs. 200.45 representing an 8.35 percent increase from its previous closing price of Rs. 184.99 per share.
Reason for the Rise:
According to exchange filings, The Federal Bank Ltd. reported a 10.4 percent year-on-year increase in net profit to Rs. 1,104.46 crore, in Q2FY25 from Rs. 1,000.16 crore in Q2FY24. On a quarter-on-quarter basis, net profit increased by 6.19, rising from Rs. 1040.02 crore in Q1 FY25.
Net interest income grew by 15.1 percent year-on-year to Rs. 2,367 crore, compared to Rs. 2,056 crore in the same period last year. Gross Non-Performing Assets(NPA) dropped to 2.09 percent in Q2FY25 from 2.26 percent in Q1FY25.
For the first half of FY25, Net Interest Income rose by 17.21 percent to Rs. 4,659.21 crores, up from Rs. 3,975.01 crores in H1 FY24, while net profit showed an increase of 13.35 percent, reaching Rs. 2144.48 crores compared to Rs. 1891.9 crores in the previous year.
On a year-on-year basis, deposits grew 16 percent to Rs. 2,69,107 crore from Rs. 2,32,868 crore, while advances increased 19 percent to Rs. 2,30,312 crore from Rs. 1,92,817 crore, and fee income rose 19 percent to Rs. 784 crore from Rs. 660 crore.
Of its total gross advances, 56 percent are to individuals, while 44 percent are to corporate and businesses.
About the company:
Incorporated in 1931 The Federal Bank Ltd is a private banking player that provides retail and corporate banking, para banking activities such as debit cards, third-party product distribution, etc., treasury and foreign exchange business.
As of September, the company operates 1,533 branches and 2,052 ATMs, serving 1.92 crore customers. Branch distribution includes 17 percent in metro areas, 19 percent in urban, 50 percent in semi-urban, and 14 percent in rural locations.
As of September, Rakha Jhunjhunwala holds a 1.42 percent stake in the company, amounting to 3.45 crore equity shares valued at Rs. 638.77 crore.
Written By: Joseph Pv
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