Last Updated on January 17, 2024 by ethinos
On January 16, 2024, Federal Bank Limited (BSE, NSE: FEDERALBNK) declared its Q3 2023-24 results, registering the highest-ever quarterly Net Profit at ₹1007 Crore in Q3 FY24.
Table of Content
General Result Takeaways
Here are the overall highlights of Q3 results announced on a YoY basis:
- The Total Business of the Bank stood at ₹438776.39 Cr.
- The Bank’s Net Profit was recorded as the highest ever in Q3 and stood at ₹1006 Cr, a growth of 25.28%.
- The Bank’s Operating Profit for Q3 was at ₹1437.33 Cr.
- For Q3, the ROA stood at 1.39% while the ROE was at 14.80%.
- The Bank’s GNPA was at 2.29%, and the NNPA stood at 0.64% for Q3.
- The bank’s Total Deposits rose by 18.96%.
- The Bank’s Total Net Advances went up by 18.44%.
- The Bank has registered the highest ever Net Interest Income in Q3, standing at ₹2123.36 Cr, a rise of 8.53%.
Additional Read: Q3 Results Dashboard
Healthy Growth and Robust Asset Quality
Apart from strong growth indicators, the Bank has earned the distinction of achieving key targets in terms of assets and portrays resilience for future growth as shown by the details below:
- By the end of Q3, the Bank’s Total Deposits were at ₹438776.39 Cr, translating to a growth of 18.72% relative to the same quarter of the previous fiscal year.
- The Total Deposits have also gone up.
- In terms of Assets, Net Advances reached ₹199185.23 Cr in Q3 FY24 relative to Q3 FY23 when it was ₹168173.13 Cr.
- Growth was witnessed in Retail Advances (up by 20.39%) and Business Banking (up by 17.80%). Commercial banking went up by 25.99%, while Corporate Advances saw growth of 14.38%. CE/CV Advances were up by 66.06%.
- The Net Worth of the Bank rose from ₹20,456.75 Cr to ₹28,084.72 Cr as of December 31, 2023.
- The Bank has been expanding with 1418 recorded branches and 1960 ATMs across India.
- With healthy initiatives to increase brand visibility, Federal Bank has extended its distribution footprint, both digitally and physically. In Q3, the Bank witnessed an effective brand salience spread over geographies and industry segments.
Q3 Result Details from the Management Commentary
The MD and CEO of Federal Bank Limited had some key details of the results to share and these are mentioned below:
- An all-time high Net Profit of ₹1007 Cr has been achieved by the Bank due to the dedicated efforts of the team.
- In the past calendar year and at the close of Q3, the Bank reports over 100 branches with a similar number going ahead. The growth trajectory of the Bank is poised well to maintain a momentum of positivity.
- The Bank is poised to diversify its operations across segments, product offerings, and geography in its endeavour for success.
Financial Results
Here is a glimpse of the consolidated financial results of Q3 (figures in ₹ Crore except where indicated by %):
| Metrics and Ratios | Q3 FY 2023-24 | Q3 FY 2022-23 | YoY % Growth |
| Net Profit | 1,006.74 | 803.61 | 25.8% |
| Total Income | 6,592.56 | 4,967.25 | 32.72% |
| Operating Profit | 1,437.33 | 1,274.21 | 12.80% |
| Net Interest Income | 2,123.36 | 1,956.53 | 8.53% |
| Total Business | 438776.39 | 369581.25 | 18.72% |
Additional Check: Federal Bank Stock Price
Q3 FY24 Result Summary
By consistently delivering healthy growth and staying power in terms of its profitability, Federal Bank is poised to meet with success in all its banking segments going ahead. In Q3, the Bank has prominently managed to maintain its asset quality while extending its distribution capabilities. Key achievements in Q3, besides the financial side of the business of the Bank, include investment from IFC to the amount of ₹958 crore. Apart from this, the bank has also achieved the successful IPO listing of Fedfina. Other successes of the Bank in Q3 comprise partnerships and collaborations with top OEMs to boost its SCF book (up by 20% QoQ), the launch of business loan offerings via its Fedmitra app, and the opening of 30 branches of the Bank. Lending relationships were also on the cards for the Bank in Q3 with the forging of a relationship worth almost ₹30 crore with a eminent client in Western India.
The Federal Bank is a private bank, headquartered in South India. It offers several banking and financial solutions to rural and urban India, with a focus on promoting digital banking, yet sustaining the human quality and the service the Bank has built its foundation on.
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Source: BSE Press Release – Federal Bank
