Total income increased by 29.6% to ₹670.3 crore from ₹517.3 crore last year. Net interest income (NII) or core income for the Federal Bank unit, rose by 38.7% year-on-year to ₹371.9 crore, while operating profit increased by 49.9% to ₹187.5 crore during the quarter.
Assets under management (AUM) grew 34.7% year-on-year to ₹21,136 crore, while disbursements increased 13.9% to ₹6,760 crore. Gold loan AUM surged 76.7% to ₹11,191 crore, accounting for 52.9% of the company’s total loan book, while mortgage AUM grew 14.5% to ₹9,777 crore.
The company said 99.2% of its AUM remains secured, reflecting its collateral-backed lending model.
On the asset quality front, gross Stage III assets improved to 1.6% from 1.9% in the March quarter and 2.0% a year earlier, while net Stage III assets declined to 1.0% from 1.3% sequentially and 1.2% in the year-ago period. Credit cost remained low at 0.8% during the quarter.
The lender reported a return on assets (RoA) of 2.6% and a return on equity (RoE) of 15.4% during the quarter. Its cost-to-income ratio improved to 52.8% from 56.9% in the preceding quarter and 58.2% a year ago, while the capital adequacy ratio stood at 20.7%.
As of June 30, Fedbank Financial Services operated 757 branches across 17 states and Union Territories and had 5,376 employees.
Following the Q1 results announcement, Fedbank Financial Services shares gained about 12.6%, hitting an intraday high of ₹174.40 before paring some of their gains. The stock now trades 4.9% higher after the cool-off at ₹162.49. The stock is up only 5% so far this year and is just about managing to stay above its IPO price of ₹140 per share.
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