On October 16, 2023: Federal Bank (BSE, NSE: FederalBnk, LSE: FEDS) announced its Q2 2023-24 financial results, showing that Federal Bank has hit the highest quarterly net profit of ₹954 Cr along with an NII of ₹2056 Cr. This is the bank’s manifestation of robust growth and strong asset quality.
Key Highlights
Catch a glimpse of the highlights of the results below:
- In Q2 2023-24, the bank’s total business reached ₹4,25,685.12 Cr
- In Q2, Federal Bank’s net profit was at ₹953.82, its highest-ever registered. This translates to an increase of 35.54%
- The Operating Profit stands at ₹1324.45 Cr
- The bank’s total deposits rose by 23.12%
- Total Net Advances rose by 19.58%
- The ROA and ROE for Q2 were at 1.36%, and 15.72%, respectively
Additional Read: Q2 Results Dashboard
Result Commentary
Mr. Shyam Srinivasan, CEO and MD of Federal Bank, commented on the results and stated that the results were indicative of the following:
- Q2 results are a result of many initiatives led by the bank, resulting in high profits.
- Marquee investments that the bank raised in Q2 are a testament to the bank’s commitment to environmental, social, and governance standards.
- Federal Bank has delivered on its commitments helping it to come closer to achieving the status of the “Most Admired Bank”.
Resilience in Performance of the Balance Sheet
As of 30 September 2023, Federal Bank registered the following, showing marked strength as far as its balance sheet goes:
- The total business of the bank grew by 21.49%, reaching ₹425685.12 Cr
- The total number of deposits rose from ₹189145.71 Cr as of 30 September 2022 to ₹232868.43 Cr as of 30 September 2023.
- Regarding assets, Net advances rose from ₹161240.32 Cr as of 30 September 2022 to ₹192816.69 as of 30 September 2023.
- Retail and business banking advances grew by 18.05%, and 18.16%, respectively.
- Commercial banking grew by 23.82%.
Additional Read: Federal Bank Share Price
The Highest-Ever Net Profit Growth Registered by the Bank
For Q2 2023-24, Federal Bank has registered an Operating Profit of ₹1324.45 Cr and a Net Profit of ₹953.82 Cr. This shows a commendable growth of 9.26% of the Operating Profit on a YoY basis.
Federal Bank Financial Working Results
The table below shows particulars of the key metrics leading to the Federal Bank’s financial results (with QoQ Data and YoY details in %) for Q2 FY 2023-24:
| Metrics | Q2 FY 2023-24 | Q2 FY 2022-23 | YoY Growth in % |
| Net Profit | 953.82 Cr | 703.71 Cr | 35.54% |
| Total Income | 6185.70 Cr | 4630.30 Cr | 33.59% |
| Operating Profit | 1324.45 Cr | 1212.24 Cr | 9.26% |
| Net Interest Income | 2056.42 Cr | 1761.83 Cr | 16.72% |
| Total Business | 425685.12 Cr | 350386.03 Cr | 21.49% |
About Federal Bank
Founded by K.P. Hormis and headquartered in Kochi, Kerala, Federal Bank is an Indian private sector bank with a foothold in urban and rural areas of the country. The bank offers products and services like retail banking, finance and insurance, investment banking, wealth management, loans, debit cards, and credit cards. Armed with the motto of “Digital at the fore, human at the core”, the bank aims at being one of the preferred banking institutions in India.
The bank’s performance is built on a solid foundation created by focusing on digitization, especially during the previous decade. A much sought-after bank in the neo-banking arena, Federal Bank’s success lies in the effective launch of digital marketing innovations and digital products. The bank’s digital transactions stand at an 86% share. With a strategy to build a secured credit portfolio while in the pursuit of quality rather than quantity, a recurring theme of the bank is the conservation of capital.
Source: https://www.federalbank.co.in/financial-result
