Kerala-based Federal Bank on Saturday (August 2) reported a 14.7% year-on-year (YoY) decline in net profit to ₹861.8 crore for the first quarter ended June 30, 2025. The profit also fell short of the CNBC-TV poll estimate of ₹933 crore.The lender’s Gross non-performing assets (GNPA) stood at ₹4,669.6 crore, from ₹4375.5 crore in the previous quarter. The net NPAs also increased to ₹1,157 crore compared to ₹1040.3 crore in the last quarter of FY25. In percentage terms, the GNPA ratio in Q1 rose to 1.91% compared to 1.84% in the previous quarter. Similarly, the net NPAs increased to 0.48% from 0.44% in the fourth quarter of FY25.
KVS Manian, Managing Director & CEO of the Bank, said: “On asset quality, while credit costs were elevated this quarter, they were largely driven by slippages in the agri and MFI portfolios. Based on current trends, we expect these slippages to moderate and stabilise going forward, leading to a normalisation in credit costs.”
However, the company’s net interest income rose modestly by 2% year-on-year to ₹2,336.8 crore from ₹2,292 crore in the same period a year ago. The net advances during the quarter also rose by 9% to ₹2,41,204 crore, while the total deposits registered an 8% growth to ₹2,87,436.31 crore.For the next two quarters, Manian said, “With macro tailwinds building and our strategic themes gaining traction, we’re confident of accelerating growth in the second half while staying disciplined on risk and profitability.”Shares of the company closed at ₹195.9, down 3.16% on the BSE on August 1. The stock has declined more than 10% in the last month.Also read: Federal Bank Q4 results: Net profit rises 14%; beats estimatesFirst Published: Aug 2, 2025 6:33 PM IST
