Federal Bank's Strong Quarter: Profits Rise Amid Strategic Growth

Federal Bank reported a 9% increase in net profit for the December quarter, reaching Rs 1,041 crore, driven by growth in non-interest income and improved asset quality. The bank increased its stake in Ageas Federal Life Insurance and added branches for strategic expansion. The scrip rose 9.50% on BSE.

Federal Bank has announced a robust 9% rise in net profit for the December quarter, totaling Rs 1,041 crore, largely due to a 20% growth in non-interest income. The Kerala-based bank's previous year's profit for the same quarter stood at Rs 955 crore.

Notably, the bank's core net interest income also saw a significant increase, up 9% to Rs 2,653 crore, achieving a historical high. This accomplishment is attributed to a corresponding 9% rise in loan growth and a minor 0.07% expansion in net interest margin, now at 3.18%.

In strategic moves, Federal Bank raised its stake in Ageas Federal Life Insurance to 30% and continued its market-focused expansion by adding six new branches. Meanwhile, shares surged 9.50% on BSE, reflecting investor confidence.