KVB and Federal Bank Limited reported significant increases in their net profits for the quarter ending September 30, 2023. KVB reported a historic net profit increase of 51.2% to Rs 378 crore (Rs 1 crore = $120,127), up from Rs 250 crore in the corresponding quarter of the previous year. Similarly, Federal Bank Limited reported a profit of Rs 1000.16 crore, marking a 35% increase from the previous year.
In addition to these net profit increases, both banks reported substantial growth in their total businesses. KVB's total business reached an unprecedented Rs 1,53,516 crore, surpassing its earlier record. Federal Bank's total business reached Rs 425685.12 crore, marking an approximately 21% increase.
The banks also managed to reduce their Non-Performing Assets (NPA). KVB's NNPA was at 0.47% or Rs 324 crore, a significant drop from 1.38% or Rs 819 crore in Q2 FY23. Federal Bank reduced its gross NPA to 2.27% from the previous year's figure of 2.45%.
Both banks also saw increases in their net interest income. KVB reported an 11.5% rise in net interest income to Rs 915 crore against Rs 821 crore last year. Federal Bank recorded its highest-ever Net Interest Income at Rs 2056.42 crore, up by 16.72%.
Federal Bank Limited also reported a standalone Q2 profit of Rs 953.82 crore and a total income for the quarter reaching Rs 6548.20 crore, up by 34% from last year's figure of Rs 4886.58 crore.
CEOs of both banks praised their institutions' performances during this period. Ramesh Babu B, CEO of KVB, highlighted consistent growth, profitability, and asset quality in the first half year. Shyam Srinivasan, CEO of Federal Bank Limited, attributed these results to successful initiatives and marquee investments raised in Q2.
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