Federal Bank’s Q3FY25 profit dips 5% to Rs 955 cr on accelerated provisions; operating profit hits record high
Mumbai: Federal Bank reported a 5% decline in net profit to Rs 955 crore for the third quarter ended December 30, 2024, compared to Rs 1,007 crore in the same period last year, The Economic Times reported.
The drop was attributed to accelerated provisions amounting to Rs 292 crore, as the bank bolstered its coverage for future risks.
This marked a significant rise in total provisions compared to Rs 91 crore in the year-ago period.
The bank’s provision coverage ratio improved to 74.21% from 71.08%.
“In line with our strategy of strengthening the foundation, we made accelerated provisions for specific riskier asset classes this quarter,” Managing Director KVS Manian was quoted as saying by ET.
Despite the profit dip, the Kochi-based lender recorded its highest-ever pre-provision operating profit at Rs 1,570 crore, up from Rs 1,437 crore last year.
This was supported by a 14.5% rise in net interest income to Rs 2,431 crore and a 21% growth in fee income.
Asset quality also saw an improvement, with the gross non-performing asset (NPA) ratio declining to 1.95% from 2.29% a year ago, and the net NPA ratio dropping to 0.49% from 0.64%.
On the balance sheet front, total net advances grew 16% year-on-year to Rs 2.30 lakh crore, while total deposits rose 11% to Rs 2.66 lakh crore as of December 2024.
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