NEW DELHI: Federal Bank, on Thursday, announced a 42% rise in net profit at Rs 854 crore for the first quarter of the current fiscal, driven by a healthy rise in interest income. Net interest income jumped 20% to Rs 1,919 crore during the quarter, while other income rose 62% to Rs 732 crore.
The bank’s gross non-performing asset (GNPA) improved to 2.38% during the quarter from 2.69% last year whereas net NPA stood at 0.69%, which improved from 0.94% in the corresponding quarter last year. Shyam Srinivasan, chief executive officer and managing director, Federal Bank, said in a virtual press conference that the bank has board approval to raise up to Rs 4,000 crore in the current fiscal.
“We have had a strong start to FY24, despite Q1 traditionally being a seasonally soft quarter, by having broad-based growth across all our businesses. Our total business crossed the 4 lakh crore mark aided by 21 per cent growth in both our deposits and advances,” said Srinivasan. “The continued improvements in our return ratios are encouraging and we are cautiously optimistic of continued traction as we set our sights on becoming the most admired bank,” he added.