Federal Bank Reports Mixed Q3 Results Amid Record Low NPA Ratio and Declining Profit Metrics

Federal Bank has recently reported its financial results for the quarter ending December 2024, revealing a mixed performance landscape. The bank's score has undergone an adjustment in evaluation, reflecting a shift from 17 to 5 over the past three months.
On a positive note, Federal Bank has achieved its lowest Gross Non-Performing Assets (NPA) ratio at 1.95%, continuing a downward trend over the last five quarters. Additionally, the bank's Net Interest Income reached a record high of Rs 2,431.34 crore, indicating a robust growth trajectory in its core business operations. The interest earned also peaked at Rs 6,808.73 crore, showcasing a favorable near-term sales trend. Furthermore, the bank's Operating Profit stood at Rs 653.29 crore, marking the highest level in the last five quarters, while the Net NPA ratio improved to 0.49%.

Conversely, challenges persist, particularly in Profit Before Tax (PBT), which has seen a decline of 25.35% year-on-year, reaching Rs 360.96 crore, the lowest in five quarters. Profit After Tax (PAT) also fell by 5.1% year-on-year to Rs 955.44 crore. The high proportion of non-operating income, constituting 71.74% of PBT, raises concerns regarding sustainability.

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