Federal Bank reports strong financial performance in Q2 of FY 2024-25

Federal Bank, one of the leading private banks in India, has recently announced its financial results for the quarter ending September 2024. The bank has shown a positive performance in the second quarter of the fiscal year 2024-25, with a score of 17, which is an improvement from the previous score of 11 in the last three months.

The bank's net interest income for the quarter was the highest at Rs 2,367.23 crore, showing a growth trend in the last five quarters. This indicates that the bank's core business is performing well and generating higher revenues. The operating cash flow for the year was also the highest at Rs 7,552.96 crore, showing a growth trend in the last three years. This indicates that the bank has been able to generate higher cash revenues from its business operations.

The bank's interest earned for the quarter was the highest at Rs 6,577.28 crore, showing a growth trend in the last five quarters. This indicates a positive sales trend in the near term. The gross NPA (non-performing assets) for the quarter was the lowest at 2.09%, showing a decrease in the proportion of stressed loans given by the bank.

The credit deposit ratio for the half-yearly period was the highest at 85.58%, showing a growth trend in the last four periods. This indicates that the bank has been able to create higher loans against its deposits, leading to higher revenue generating assets. The operating profit for the quarter was the highest at Rs 601.41 crore, showing a positive trend in the near term. The profit after tax for the quarter was also the highest at Rs 1,056.69 crore, showing a positive trend in the near term.

The bank's earnings per share for the quarter was the highest at Rs 4.31, indicating an increase in profitability and higher earnings for shareholders. The net NPA for the quarter was the lowest at 0.57%, showing a decrease in the proportion of stressed loans given by the bank. The cash and cash equivalents for the half-yearly period were the highest at Rs 16,948.45 crore, indicating an improvement in short-term liquidity.

However, there are some areas that need improvement for Federal Bank. The profit before tax less other income for the quarter has fallen by -19.46% year on year, indicating a negative trend in the near term. The non-operating income for the quarter was also high at 68.51% of the profit before tax, which may not be a sustainable business model. The non-operating income for the quarter was the highest at Rs 963.95 crore, which may not be sustainable in the long run.

Overall, Federal Bank has shown a positive financial performance in the second quarter of the fiscal year 2024-25. With its strong net interest income, operating cash flow, and credit deposit ratio, the bank is well-positioned to continue its growth in the coming quarters. Investors can take note of the stock call of 'Buy' by MarketsMOJO and consider adding Federal Bank to their portfolio.