More Stories

Informist, Saturday, Oct. 18, 2025

 

Please click here to read all liners published on this story

--Federal Bank Jul-Sept net profit INR 9.55 bln 
--Analysts saw Federal Bank Jul-Sept net profit at INR 8.86 bln 
--Federal Bank Jul-Sept net profit INR 9.55 bln vs INR 10.57 bln year ago 
--Federal Bank Apr-Sept net profit INR 18.17 bln vs INR 20.66 bln year ago 
--Federal Bank Jul-Sept total income INR 78.24 bln vs INR 75.41 bln year ago 
--Federal Bank Jul-Sept provisions INR 3.63 bln vs INR 1.58 bln year ago 
--Federal Bank Apr-Sept total income INR 156.24 bln vs INR 147.87 bln yr ago 
--Federal Bank gross NPA ratio 1.83% as on Sept 30 vs 1.91% qtr ago 
--Federal Bank Basel III capital adequacy ratio 15.71% as on Sept 30 
--Federal Bank net NPA ratio 0.48% as on Sept 30, unchanged on qtr 
--Federal Bank Jul-Sept net interest income INR 24.95 bln, up 5.4% on year 
--Federal Bank net advances INR 2.45 tln as on Sept 30, up 6.2% YoY 
--Federal Bank total deposits INR 2.89 tln as on Sept 30, up 7.4% YoY 
--Federal Bk provision coverage ratio excluding write-offs 73.45% on Sept 30 
--Federal Bk: Asset quality remains solid on prudent risk management 
--Federal Bk Jul-Sept net interest income INR 24.95 bln vs 23.67 bln yr ago 
--Federal Bank Jul-Sept NIM 3.06% vs 2.94% qtr ago, 3.12% year ago 
--Federal Bk provision coverage ratio excluding write-offs 73.45% on Sept 30 
--Federal Bk Jul-Sept cost of deposits 5.57% vs 5.78% qtr ago, 5.86% yr ago 
--Federal Bank Jul-Sept cost of funds 5.61% vs 5.85% qtr ago, 5.93% year ago 
--Federal Bank: Jul-Sept NIM up 12 bps on qtr driven by lower cost of funds 

 

By Srijita Bose

 

MUMBAI – A surge in provisions led to a fall in Kerala-based Federal Bank's bottom line for the September quarter. However, the fall in net profit was lower than analysts' estimates due to rise in other income. 

 

The bank's net profit for the quarter fell nearly 10% from a year earlier to INR 9.55 billion. The average of estimates of a pool of 11 brokerage firms had pegged the private-sector lender's net profit at INR 8.86 billion, down 16% from the previous year. However, the net profit was higher than INR 8.62 billion for the June quarter.

 

Provisions and contingencies for the quarter more than doubled to INR 3.63 billion from INR 1.58 billion a year ago, but were lower than INR 4.00 billion in the preceding quarter. Ahead of the bank's earnings on Saturday, shares of the bank had ended 0.1% lower at INR 212.38 on the National Stock Exchange on Friday.

 

The bank's other income for the September quarter rose 12% on year to INR 10.82 billion, which cushioned the net profit fall. In the preceding quarter, the bank's other income was INR 11.13 billion. 

 

Within other income, the bank recorded the highest fee income, underscoring continued momentum in non-interest revenue streams, the bank said. The bank earned INR 8.86 billion in fee income, up 13% on year.

 

The bank earned interest income of INR 67.42 billion, up from INR 65.77 billion a year ago and INR 66.87 billion in the preceding quarter. The bank said it recorded the highest-ever net interest income of INR 24.95 billion, up 5.4% on year. The net interest margin of the bank improved 12 basis points from the previous quarter to 3.06% as on Sept. 30.

 

On the asset quality front, the gross non-performing asset ratio was 1.83% as on Sept. 30, against 1.91% a quarter ago. The net non-performing asset ratio was unchanged from a quarter ago at 0.48%. The bank's fresh slippages during the quarter were

INR 5.79 billion, with INR 4.57 billion worth of assets written off, which led to rise in provisions during the quarter. The bank's slippage ratio at the end of the September quarter was 0.94%, down from 1.11% a quarter ago but up from 0.84% a year ago.

 

Provision coverage ratio of the bank excluding write-offs fell to 73.45% as on Sept. 30, from 75.37% a year ago and 74.41% a quarter ago. The capital adequacy ratio based on Basel-III norms was 15.71% as on Sept. 30, lower than 16.03% a quarter ago.

 

Total deposits of the bank grew 7.4% on year to INR 2.89 trillion as on Sept. 30, while total advances grew 6.2% on year to INR 2.45 trillion. The current account and savings accounts ratio improved 94 bps from a year ago to 31.01%. The total current account and savings account deposits at the end of September quarter were INR 895.91 billion.

 

"Our CASA franchise continues to demonstrate sustained and meaningful growth, reflecting the trust of our customers and the consistency of our team's execution," K.V.S. Manian, managing director and chief executive officer of Federal Bank, said. "We are also broadening our asset mix thoughtfully, increasing the share of our mid-yield portfolio in a measured and disciplined way...our asset quality remains solid, supported by prudent risk management and a balanced approach to growth."

 

The bank's cost of deposits was 5.57%, down from 5.78% a quarter ago and 5.86% a year ago. Cost of funds was down to 5.61%, from 5.93% a year ago and 5.85% a quarter ago.

 

The bank's total income for the September quarter rose nearly 4% on year to INR 78.24 billion, but was nearly flat from INR 78.00 billion a quarter ago. For Apr-Sept, the bank's total income was INR 156.24 billion, up from INR 147.87 billion a year ago. The net profit for the first half of the financial year ending March was INR 18.17 billion, lower than INR 20.66 billion a year ago. End

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.