Federal Bank reported a strong set of earnings for the fourth quarter ended March 31, 2025, with net profit rising 13.67% year-on-year to ₹1,030.23 crore, surpassing estimates of ₹977 crore. On a sequential basis, the profit grew 7.83% from ₹955.44 crore in Q3FY25, reflecting healthy operational performance.
Net interest income (NII) for the quarter came in at ₹2,377.4 crore, which was slightly below estimates of ₹2,431.9 crore. The bank reported its highest-ever other income at ₹1,005.95 crore, up 33.4% YoY, and fee income surged 30.1% YoY to ₹800.47 crore.
For the full year FY25, Federal Bank’s total business crossed ₹5.18 lakh crore, and net profit rose 8.9% YoY to ₹4,051.89 crore. Asset quality remained strong with GNPA at 1.84% and NNPA at 0.44%, the best levels seen in over a decade. The Provision Coverage Ratio improved to 75.37%, and the bank’s capital adequacy ratio stood at 16.4%.
Managing Director and CEO KVS Manian said the bank’s strategic focus on mid-yield segments and current account traction, with a 35% YoY growth, helped offset NIM pressures. The bank also maintained its liquidity and CASA strength while continuing to scale digitally and operationally.
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