Federal Financial institution Q1 Outcomes: Standalone web revenue falls 15% YoY to Rs 862 crore; NII up 2%
The financial institution additionally posted a 2% improve YoY in web curiosity revenue (NII), which rose to Rs 2,336.83 crore within the June quarter from Rs 2,291.98 crore a 12 months in the past.
Regardless of the drop in backside line, the lender posted its highest-ever different revenue of Rs 1,113 crore, which was up 21.6% from the year-ago interval. Whole revenue for the quarter rose 7.6% year-on-year to Rs 7,799.61 crore.
KVS Manian, Managing Director & CEO of the financial institution, stated the quarter “reaffirmed the energy of our diversified mannequin.” He famous that “even in a sometimes mushy Q1, we noticed momentum in key segments like business banking, bank cards, and gold loans.”
“Our mid-yielding engines are firing nicely too,” Manian stated. “We delivered a powerful working efficiency, with enhancing productiveness. Charge revenue hit a file excessive, and CASA ratios continued to enhance steadily.”
Deposits in Q1
The financial institution’s whole deposits grew 8.03% to Rs 2.87 lakh crore, whereas web advances elevated by 9.24% to Rs 2.41 lakh crore. Inside this, retail advances rose 15.6% to Rs 81,047 crore, business banking loans jumped 30.3% to Rs 25,028 crore, and company loans grew 4.5% to Rs 83,680 crore.
The financial institution’s CASA (present account and financial savings account) base expanded 12% YoY to Rs 87,236 crore. Internet curiosity margin for the quarter stood at 2.94%, whereas annualised earnings per share got here in at Rs 14.07.
Property in Q1
Asset high quality remained steady, with gross non-performing property (NPAs) at 1.91% and web NPAs at 0.48%. Provision protection ratio (excluding technical write-offs) stood at 74.41%.
Manian stated that “whereas credit score prices have been elevated this quarter, they have been largely pushed by slippages within the Agri and MFI portfolios.” He added, “Based mostly on present tendencies, we count on these slippages to reasonable and stabilise going ahead, resulting in a normalisation in credit score prices.”
The lender’s capital adequacy ratio for the June 2025 quarter stood at 16.03%, and web price elevated 12.2% YoY to Rs 33,994 crore. Return on property (ROA) and return on fairness (ROE) for the quarter stood at 1% and 10.3%, respectively.
“With macro tailwinds constructing and our strategic themes gaining traction, we’re assured of accelerating progress within the second half whereas staying disciplined on threat and profitability,” Manian stated.
