October 4, 2024 – Federal Bank has released its business update for the second quarter of the fiscal year 2025, showcasing robust growth in both deposits and advances. The bank reported total deposits of ₹2.69 lakh crore, a notable 16% year-on-year (YoY) increase compared to ₹2.32 lakh crore in the same period last year.
Strong Growth in Customer Deposits
Excluding interbank deposits and certificates of deposit, the bank’s customer deposits also saw a 16% rise, reaching ₹2.53 lakh crore in Q2 FY25, up from ₹2.19 lakh crore in Q2 FY24. This growth reflects Federal Bank's continued strength in attracting customer deposits, despite a competitive banking environment.
CASA Deposits Rise by 11.5%
Federal Bank's CASA (Current Account Savings Account) deposits surged by 11.5% YoY, reaching ₹80,923 crore in the second quarter, compared to ₹72,589 crore in Q2 FY24. The increase in CASA deposits highlights enhanced customer engagement with low-cost deposit products, further improving the bank's funding profile.
Advances Grow by 19% YoY
In addition to deposit growth, Federal Bank’s advances saw a healthy 19% increase YoY. This rise in advances signifies the bank’s expanded lending operations and its growing presence in the credit market, reflecting strong demand for loans across sectors.
Conclusion
Federal Bank’s impressive performance in Q2 FY25 demonstrates its robust deposit growth and expanding lending portfolio. The 16% surge in total deposits, combined with a 19% rise in advances, underscores the bank’s strong market position as it continues to strengthen its core banking operations.
