Federal Bank Ltd for the third quarter ended December 31, 2024 reported 5% drop in net profit at ₹955.44 crore as compared with ₹1,007 crore in the year ago period.
Net Interest Income (NII) of the bank for the quarter grew 14.5% Year on Year (YoY) to ₹2,431.34 crore.
Gross NPA has reduced to ₹4,553.31 crore from ₹4,884 crore in the year ago period. The NPA in the agri loans has increased to ₹1,014 crore from ₹969 crore. Also the NPA in the Commercial Vehicle/ Construction Equipment loan segment also increased to ₹81 crore from ₹66 crore a year ago. The NPA in other segments, however, has reduced YoY.
The bank’s Net NPA during the quarter has reduced to ₹1,131 crore from ₹1,322 crore in the year ago period.
Provision Coverage Ratio (excluding technical write-offs) stood at 74.21%. Recovery and upgradation during the quarter totalled ₹335 crore and the bank has recognized accelerated provisioning of ₹292 crore during the quarter.
K.V.S. Manian, MD & CEO, Federal Bank in a statement said, “This quarter has been pivotal for us as we strategically
reoriented both the asset and liability sides of our balance sheet, addressing fundamental aspects to position the bank strongly for the future.”
“We have chosen to focus on granular retail deposit growth instead of high value, expensive deposits. We have also consciously avoided low yielding or high-risk assets for the sake of growth. Notwithstanding this disciplined approach, we have achieved a year-on-year growth of 15% in advances and 11% in deposits, positioning us competitively within the sector,” he said.
“Our asset quality has reached its strongest levels in a decade. In alignment with our commitment to building a robust foundation, we have undertaken accelerated provisioning for certain riskier asset classes this quarter,” he added.
Published – January 28, 2025 10:57 am IST
