Federal Bank Q1 earnings: Shares hit record high as net NPAs fall to lowest in a decade  

Shares of Federal Bank rose to a record high on Friday after the private sector lender reported its Q1 earnings. Federal Bank stock rose 7% to hit a record high of Rs 351 in the afternoon trade after the lender said net NPAs fell to a decadal low. Market cap of the firm rose to Rs 86,413 crore. 

Net profit rose 36.57% to Rs 1,177 crore, a record in Q1 against Rs 862 crore a year ago. Fresh slippages fell 37.79% on a year on year basis and the slippage ratio improved to 0.61% from 1.11% a year ago. 

Net interest income rose 26.06% to Rs 2946 crore against Rs 2337 crore. 

Fee income climbed 21.71%, even as treasury income remained subdued through a volatile market period.

Gross non performing assets slipped to 1.52% in Q1 against 1.91% YoY & 1.62% QoQ

Net NPAs fell to 0.18% in Q1 against 0.48% YoY & 0.20% QoQ

KVS Manian, Managing Director & CEO, said, “This quarter demonstrates something important about the franchise we have been building. Our profit grew nearly 37% in a period when treasury had a challenging period, which tells you that the earnings are coming from the core business, not from market gains. Net interest income growing 26% against advances growth of 15% represents the expansion in our NIMs, which has been a core focus for the bank.”