Federal Bank Achieves Twin Milestones in FY25: Crosses ₹5.18 Lakh Crore in Total Business and ₹4,000 Crore in Annual Net Profit
- Federal Bank Posts Record ₹4,052 Cr Profit in FY25
- Federal Bank Surpasses ₹5.18 Lakh Cr in Business
- Federal Bank Delivers Strong FY25 Results
- Federal Bank Achieves ₹4,000 Cr Profit Milestone
BILKULONLINE
Ahmedabad, May 2: Federal Bank has announced a robust performance for the financial year ended March 31, 2025, crossing key strategic milestones and delivering its highest-ever annual net profit of ₹4,051.89 crore—a 13.67% growth over the previous year. Total business surged past ₹5.18 lakh crore, driven by strong credit and deposit growth, backed by disciplined execution, strategic pricing, and a focus on high-yield segments.
Marking a year of transformation and strategic clarity, Federal Bank also reported its best asset quality in over a decade, with Gross Non-Performing Assets (GNPA) at 1.84% and Net NPA (NNPA) at just 0.44%.
Strong Financials and Operational Growth
The bank’s Total Business stood at ₹5,18,483.86 crore, a YoY increase of 12.24%. This includes a Total Net Advances portfolio of ₹2,34,836.39 crore, up 12.15%, and Total Deposits of ₹2,83,647.47 crore, registering a 12.32% growth.
Segment-wise, the bank witnessed healthy expansion in:
- Retail Advances: Grew by 14.50% to ₹77,212.16 crore
- Business Banking: Up 11.44% to ₹19,064.36 crore
- Commercial Banking: Rose sharply by 26.76% to ₹27,199 crore
- Corporate Advances: Increased by 8.39% to ₹79,773.79 crore
- CV/CE Loans: Jumped 34.93% to ₹4,644 crore
- Gold Loans (including ADLG): Up by 20.93% to ₹30,505 crore
In Q4 FY25, the bank clocked a Net Profit of ₹1,030.23 crore, supported by an Operating Profit of ₹1,465.40 crore. The full-year net profit of ₹4,051.89 crore reflects a consistent improvement in core profitability, supported by rising fee income and higher net interest income.
Net Interest Income (NII) for the year rose 14.16% YoY to ₹9,467.99 crore. For Q4, NII stood at ₹2,377.44 crore, up from ₹2,195.11 crore a year ago. Total income for the quarter was ₹7,654.31 crore, representing a 13.70% YoY increase. The Net Interest Margin (NIM) improved to 3.12% in Q4 FY25, underscoring effective asset-liability management amid a softening interest rate environment.
High-Quality Asset Performance
Federal Bank’s asset quality was a standout in FY25. The GNPA stood at ₹4,375.54 crore (1.84% of gross advances), while the NNPA was ₹1,040.38 crore (0.44% of net advances). The Provision Coverage Ratio, excluding technical write-offs, stood at a healthy 75.37%.
Strong Capital Base and Shareholder Returns
The bank’s Net Worth increased by 13.86% to ₹33,121.64 crore. Its Capital Adequacy Ratio (CRAR) under Basel III norms was a strong 16.40%, offering ample buffer for future expansion.
Based on the strong FY25 performance, the Board has recommended a 60% dividend (₹1.20 per equity share of ₹2 face value), subject to shareholder approval at the upcoming Annual General Meeting.
Comment from the CEO
KVS Manian, Managing Director & CEO of Federal Bank, said:
“As we have consistently articulated, our focus remains on profitable growth—driven by sustainable, high-quality earnings aligned with long-term value creation. This quarter’s performance is a strong validation of that approach. FY25 was a transformative year for us, with strategic initiatives yielding tangible results. The growth in mid-yield segments and current accounts, which saw a YoY increase of 35% and QoQ growth of 27%, are testimony to that.”
“Despite a rate cut environment, we navigated NIM pressures through robust CASA growth, scientific pricing, and maintaining the best asset quality in over a decade. The crossing of the ₹5 lakh crore business and ₹4,000 crore net profit milestones marks a defining moment in our journey. With a focused strategy and a committed team, we are poised for sustained momentum.”
Strategic & Digital Initiatives
In FY25, Federal Bank deepened its transformation with several high-impact initiatives:
Project Udaan: ‘Free the Branch’ initiative aimed at branch transformation
FedOne: A new Corporate Internet Banking platform
Overhaul of performance metrics across the branch network
Adoption of data-driven, scientific pricing models for better profitability
150 transformation projects launched, with 50 being high-impact and aligned to strategic goals
Bollywood actress Vidya Balan roped in as the Bank’s first-ever brand ambassador, enhancing brand recall and customer engagement
Expanding National Footprint
The bank opened 85 new outlets during the year, taking its total banking outlets to 1,589 as of March 31, 2025. It also operates 2,080 ATMs and cash recyclers, including mobile ATMs, strengthening its pan-India presence.
With its strategic clarity, executional discipline, and strong fundamentals, Federal Bank has laid the foundation for sustainable growth and stakeholder value creation ars. FY25 will be remembered as a year of transition, resilience, and renewed momentum for the bank.
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