Federal Bank announced Q3FY25 results Operating Profit: Highest ever at Rs 1,569.46 crore. Net Interest Income: At an all-time high of Rs 2,431.34 crore, reflecting a 14.50% YoY growth. Fee Income: Witnessed a strong 21% YoY growth. Gross Non-Performing Assets: Reduced to 1.95%. Net Non-Performing Assets: Declined to 0.49%. Provision Coverage Ratio: Strengthened to 74.21%. Total Deposits: Increased by 11% YoY, reflecting strong customer trust and engagement. Total Net Advances: Achieved a growth of 16% YoY, driven by focused lending strategies. Average CASA: Grew by 11% YoY, underlining the strength of the Bank’s core business engine. NRE Deposits: Registered a solid 10% YoY growth, showcasing the Bank’s popularity among non-resident customers. Credit Cards: Expanded by 24% YoY, reflecting enhanced customer adoption. Commercial Vehicle/Construction Equipment (CV/CE) and Micro Advances: Delivered robust growth of 39% and 50% YoY, respectively. KVS Manian, MD & CEO, Fedderal bank, 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. We achieved this with minimal disruption. 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. We remain steadfast in our focus on building a high-quality franchise that delivers value to all stakeholders whether through superior customer service and relationships, an enhanced employee proposition, or consistent and sustainable earnings quality. As we look ahead, we are optimistic about future opportunities and confident in our ability to create enduring value for all our stakeholders.” Result PDF
Conference Call with Federal Bank Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.