Federal Bank's Mixed Q3 Performance: Profit Dip but Income and Asset Quality Improve

Federal Bank reported a 5% decline in net profit to Rs 955 crore for Q3 ended December 2024. Despite the profit fall, total income increased to Rs 7,725 crore, and gross NPAs improved to 1.95%. However, provisions excluding tax significantly rose, while interest income and operating profit showed growth.

Federal Bank, a leading private sector lender, disclosed a 5% decrease in net profit for the third quarter ending December 2024, totaling Rs 955 crore. This is a downturn from Rs 1,007 crore reported during the same timeframe the previous year.

While net profits slipped, the bank's total income experienced a notable climb, reaching Rs 7,725 crore compared to last year's Rs 5,593 crore in the corresponding period. Interest income also followed an uptrend, surging to Rs 6,809 crore.

In terms of assets, the bank made positive strides. Its gross non-performing assets ratio improved to 1.95%, a decrease from 2.29% a year prior. Despite these gains, the bank's provisions, excluding tax, saw a significant rise to Rs 292 crore, triple that of last year.

(With inputs from agencies.)