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Federal Bank shares rose over 7 per cent after the private lender reported an 11 per cent y-o-y increase in net profit for the quarter ending in September 2024, totalling ₹1,057 crore.
At 10.22 a.m. on the BSE, Federal Bank’s shares gained 7.15 per cent to reach ₹197.90 following an intraday high of ₹199.55. The stock closed at ₹200.70, up 16.00 points (+8.66%).
The bank’s net interest income increased by 15 per cent y-o-y to ₹2,367 crore, while other income rose to ₹964 crore in Q2FY25, up from ₹730 crore a year earlier. Net advances grew by 19 per cent y-o-y to ₹2.30 lakh crore, with total deposits rising 16 per cent y-o-y to ₹2.69 lakh crore. Meanwhile, the net interest margin moderated by 4 basis points (bps) sequentially to 3.12 per cent in Q2.
The bank’s asset quality improved, as gross and net non-performing asset ratios (GNPA and NNPA) declined by 2 bps and 3 bps sequentially, to 2.09 per cent and 0.57 per cent, respectively. However, the capital set aside for potential bad loans rose by 3 bps quarter-on-quarter to 30 bps in Q2.
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