Federal Bank Q2 Update: Total Deposits Rise 15.6% To Rs 2.69 Lakh Crore

Federal Bank's total deposits in the quarter ended Sept. 30, 2024 rose by 15.6% year-on-year to Rs 2.69 lakh crore, as per the provisional data shared by the private lender on Friday.

The total deposits, in the year-ago period, stood at Rs 2.32 lakh crore.

The customer deposits, which forms the bulk of the bank's overall deposits, increased by 16% to Rs 2.53 lakh crore.

"As per internal classification, retail credit book grew by 23% and wholesale credit book grew by 13%. Retail to wholesale ratio is at 57:43, respectively," Federal Bank said in an exchange filing.

The lender's gross advances jumped 19.3% to Rs 2.34 lakh crore, as of Sept. 30, 2024. It stood at Rs 1.95 lakh crore in the year-ago period.

CASA ratio—the proportion of deposits that come from low-cost current and savings accounts—decreased by 110 basis points to 30.07% from 31.17% in the year-ago period. A lower CASA ratio indicates that the bank relies on costlier wholesale funding, which can hurt its margin.

In the quarter ended June 2024, Federal Bank's standalone net profit had risen by 18.2% year-on-year to Rs 1,010 crore. The net interest income had climbed by 19% to Rs 2,292 crore.

Shares of Federal Bank closed 0.07% lower at Rs 193.67 apiece on the NSE, compared to a 0.93% decline in the benchmark Nifty 50.

The stock has risen 24% on a year-to-date basis, and 31.5% over the past 12 months.

Out of 42 analysts tracking the company, 34 have a 'buy' rating on the stock, six suggest a 'hold' and two recommend 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential upside of 15.8%.