Federal Bank Share Price Surges 4%

On November 19, 2024, Federal Bank share price traded 4.51% higher at ₹209.29 at 12:40 PM on NSE. The stock added to yesterday’s gain of around 0.5%. Federal Bank’s share price has declined by 3.15% over the past five days.

Federal Bank Raises ₹1,500 Crore via Bonds

Federal Bank successfully raised ₹1,500 crore last week through its first-ever 10-year infrastructure bond issuance on a private placement basis, offering a coupon rate of 7.76%. The issuance included a base issue of ₹750 crore and an additional greenshoe option of the same amount.

The bonds attracted solid investor interest, with key participants including insurance companies and pension funds.

Q2 FY25 Financial Highlights

Federal Bank recorded a 10.8% growth in net profit for the second quarter of the current fiscal year 2025, with earnings rising to ₹1,056.7 crore compared to ₹954 crore in the same quarter last year.

The bank’s net interest income reached ₹2,367.3 crore, against ₹2,056.4 crore in the corresponding period of the previous year. However, the net interest margin declined slightly to 3.12% from 3.22% during the quarter.

In terms of asset quality, the gross non-performing asset ratio improved marginally to 2.09% from 2.11% in the previous quarter.

Similarly, the net non-performing asset ratio decreased to 0.57% from 0.6% in the prior quarter. The provision coverage ratio, excluding technical write-offs, stood at 71.82%.

About Federal Bank

Federal Bank is one of India’s leading private sector banks, headquartered in Aluva, Kerala. Established in 1931, the bank has grown into a prominent financial institution, offering a comprehensive range of banking and financial services. Its offerings include retail and corporate banking, loans, wealth management, and digital banking solutions.

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