Federal Bank Share Price Falls 4% Post Q4 FY25 Results — Here’s What Happened

Market Performance

Federal Bank's share price sharply declined on Friday, reacting to the company’s Q4 FY25 financial results.

• The stock dropped 4.32% to ₹188.10 on the BSE.
• At 12:45 PM, it was trading at ₹188.95, down 3.89% from the previous close.

The dip in Federal Bank share price came despite an uptick in quarterly profits, highlighting mixed investor sentiment.

Q4 FY25 Highlights

Federal Bank’s Q4 FY25 results revealed steady business growth but mixed financial performance every quarter.

Revenue

• Net Interest Income (NII) rose 8.3% YoY to ₹2,377.4 crore.
• However, NII declined by 2% QoQ, signaling short-term pressure.

EBITDA & Margins

• Though EBITDA figures weren’t explicitly mentioned, the Net Interest Margin (NIM) improved to 3.12%, showing operational efficiency.

Net Profits

• Net profit for Q4 FY25 stood at ₹1,030.2 crore, a 13.7% YoY increase compared to ₹906.3 crore in Q4 FY24.

Company Update: Federal Bank’s Business Metrics

Federal Bank displayed improvement in key financial indicators during the quarter:

• Loan Growth:
  • 2% QoQ
  • 12% YoY
  • Mid-yield loans surged 19% YoY.
• Deposit Growth:
  • 7% QoQ
  • 12% YoY
• Asset Quality:
  • Sequential improvement seen
  • Slippages stood at ~90 bps.

The company maintained healthy profitability despite rising operational expenses due to branch expansion.

Summary

Federal Bank's share price dropped over 4% following its Q4 FY25 earnings release. At the same time, the company delivered strong YoY profit growth and improved asset quality; a drop in quarterly NII and increased expenses led to subdued market sentiment.

With Federal Bank showing consistent long-term business growth and stable asset quality, investor attention remains focused on how the company navigates short-term cost pressures and sustains margin improvement.