Federal Bank Q4 Results: Net Profit Surges 14% To Rs 1,030 Cr, Hits Rs 5.18 Lakh Cr Total Business Milestone

Federal Bank announced the financial results for the quarter and year ended 31st March 2025 on Wednesday. The bank reported a net profit of Rs 1,030 Cr in Q4FY25, up by 14% YoY from Rs 906 Cr in Q4FY24. The bank said its net interest income (NII) surged 8% to Rs 2,377 Cr in the quarter under review compared to Rs 2,195 Cr in the year-ago quarter. This happened following the bank's strengthening of its balance sheet fundamentals and the maintenance of asset quality at its decadal peak, and operating performance remained robust.

The bank's operating profit for the quarter was Rs 1,465 Cr, up 32% YoY from Rs 1,110 Cr in the year-ago quarter. With key ratios continuously stable at ROA of 1.24% vs. 1.22% (YoY), ROE of 12.82% in Q4FY25 vs. 12.75% in Q4FY24, Net Interest Margin (NIM) of 3.12% vs. 3.21%, Cost to Income Ratio of 56.69%, up from 62.35%, and Credit Cost of 0.26%, up from 0.68%, the bank's operating performance continues to remain strong.

With double-digit growth in net profit and other income, better asset quality, and higher capital ratios, Federal Bank produced a robust performance in the fourth quarter of FY25. The bank's total income for the quarter increased by 13.70% YoY to Rs. 7654.31Cr. The quarter's annualized earnings per share (EPS) are Rs 17.02. With net non-performing assets (NPA) falling to 0.44% from 0.60% and gross non-performing assets (GNPA) growing to 1.84% from 2.13%, the bank's asset quality remained excellent.

The Provision Coverage Ratio (PCR) climbed to 75.37%, up 429 basis points from the previous year.

At the end of Q4 FY25, the bank's gross non-performing assets (NPA) were Rs. 4375.54 Cr, or 1.84 per cent of gross advances. As of March 31, 2025, the Net NPA was Rs. 1040.38 Cr, and the Net NPA as a percentage of Net Advances was 0.44%. With the exception of technical write-offs, the provision coverage ratio was 75.37%, demonstrating strong asset quality.

In terms of the balance sheet, CASA deposits climbed by 16% to Rs 85,757 crore, while total deposits increased by 12% YoY to Rs 2,83,647 crore. The CASA ratio went up from 29.38% to 30.23%. At Rs 2,38,134 crore, gross advances represented a 14% year-on-year growth.

As of March 31, 2025, the bank's total business had grown to Rs. 518483.86 Cr, representing a 12.24% growth. Net advances on the asset side climbed from Rs. 209403.34 Cr on March 31, 2024, to Rs. 234836.39 Cr on March 31, 2025.

"The Board of directors at its meeting held today has recommended a dividend of 60% per equity share having face value of Rs.2 for the year ended 31st March 2025. The dividend will be paid after the approval of shareholders at the Annual General Meeting," said Federal Bank in a statement.

In FY25, the bank added 85 new branches nationwide, bringing its total number of banking locations to 1589. As of March 31, 2025, there were 2080 ATMs and recyclers (including mobile ATMs).