Federal Bank , a prominent private sector lender, has announced its financial results for the first quarter, showcasing a mixed performance with improvements in certain key metrics but also facing challenges in profitability and asset quality.

Profit and Income

The bank reported a net profit of ₹862.00 crore for the quarter, representing a 15% decrease compared to ₹1,010.00 crore in the previous year. Despite the decline in net profit, the bank achieved its highest ever total business of ₹5.29 lakh crore. Total income saw an uptick, with other income reaching a record ₹1,113.00 crore.

Fee Income and Key Financial Metrics

Federal Bank reported record fee income of ₹786.49 crore, showing a strong 20% year-over-year growth. Key financial metrics included:

Asset Quality

The bank faced challenges with asset quality:

• Gross Non-Performing Asset (NPA) ratio increased to 1.91%
• Net NPA ratio rose to 0.48%
• Provision coverage ratio stood at 74.41%

Notably, the bank experienced elevated slippages, driven largely by the microfinance portfolio, with credit costs at 65 basis points.

Deposits and Advances

Federal Bank maintained strong growth in both deposits and advances:

• Total deposits: ₹2,87,436.00 crore (10% YoY growth)
• Advances: ₹2,45,286.00 crore (9% YoY growth)

CASA and Digital Footprint

The bank's CASA (Current Account Savings Account) ratio improved to 30.35%, with strong savings bank traction. Federal Bank continued to expand its digital footprint, with 93% of transactions processed digitally.

Management Commentary

Shyam Srinivasan, Managing Director & CEO of Federal Bank, stated, "The Board of Directors have considered, reviewed and approved the Consolidated and Standalone Unaudited Financial Results of the Bank for the quarter ended June 30, as recommended by the Audit Committee."

Federal Bank's performance in Q1 reflects its resilience in a challenging economic environment, with record fee income and strong business growth. However, the decrease in profitability and elevated slippages indicate ongoing challenges in managing asset quality. The bank's focus on maintaining a strong capital position, improving operational efficiency, and expanding its digital presence continues to be evident in its financial results, even as it navigates through asset quality pressures.

Federal Bank , a prominent player in the Indian banking sector, has announced a significant change in its senior management. Ms. Bincy Cherian has been appointed as the Chief of Internal Vigilance, effective August 1, 2025. This appointment marks a notable step in the bank's commitment to maintaining robust internal controls and vigilance mechanisms.

New Role and Designation

Ms. Cherian will be designated as Senior Vice President and Chief of Internal Vigilance, becoming part of the bank's senior management personnel. She previously served as Senior Vice President & Deputy Chief Vigilance Officer, demonstrating her progression within the organization.

Extensive Experience and Qualifications

Bincy Cherian brings a wealth of experience to her new position, with over 26 years in the banking industry. Her career at Federal Bank has been marked by significant achievements, including:

• Leading large corporate credit portfolios
• Holding key leadership roles across various verticals, including the Large Corporate Hub

Her educational background and professional certifications include:

• Postgraduate degree in Agriculture
• Certified Associate of the Indian Institute of Bankers
• CICC certification by Moody's Analytics

Responsibilities and Expectations

In her new role, Ms. Cherian will oversee the bank's internal vigilance function. This position is crucial for maintaining the integrity of the bank's operations and ensuring compliance with regulatory standards.

Corporate Governance Implications

Federal Bank's decision to appoint Ms. Cherian to this critical role underscores the bank's commitment to strong corporate governance practices. The bank has confirmed that Ms. Cherian is not related to any director of the bank, ensuring independence in her role.

Conclusion

This appointment comes at a time when banks are increasingly focusing on strengthening their internal control mechanisms. Ms. Cherian's extensive experience and qualifications position her well to contribute significantly to Federal Bank's vigilance and compliance efforts.

The bank's shareholders and stakeholders will likely watch with interest as Ms. Cherian takes on this crucial role, potentially influencing the bank's risk management and corporate governance strategies.