KOCHI: Even as we are used to a Kerala-based banking scene where peers like South Indian Bank, CSB Bank, Dhanlaxmi Bank, and ESAF Bank tend to play quieter roles,, Federal Bank is making waves with its ambition to stand among India’s top private sector banks.
The bank’s Q2 results underscore this ambition, as shares surged nearly 9 per cent on Tuesday following an 11 per cent increase in net profit to Rs1,057 crore for the September quarter.
The stock closed at Rs200.70 on the BSE, up 8.66 per cent, and reached an intra-day high of Rs201.30, marking an 8.98 per cent jump. The stock is trading very close to its 52 week high of Rs206.59.
Market cap
The bank’s market capitalization is way ahead of all other banks, at Rs49,140 crore. Trading volumes were robust, with 27.50 lakh shares on the BSE and 679.24 lakh shares on the NSE.
Federal Bank’s total income rose to Rs7,541 crore, compared with Rs6,186 crore in the same period last year. Interest income increased to Rs6,577 crore, up from Rs5,455 crore, while net interest income (NII) grew 15 per cent year-on-year, reaching Rs2,367 crore.
Asset quality improved, with gross non-performing assets (NPAs) declining to 2.09 per cent from 2.26 per cent a year earlier, while net NPAs fell to 0.57 per cent from 0.64 per cent, reflecting Federal Bank’s focus on quality growth.
