News
Fedbank Financial Services
29-Jul-2025 | 08:35
AUM up 19%, stable asset quality
The income from operation of Fedbank Financial Services increased 9% to Rs 519.71 crore in Q1FY2026. Overall OPM improved to 68.9% in Q1FY2026 from 68.8% in Q1FY2025, leading to 9% rise in operating profit to Rs 357.87 crore. Other income declined 95% to Rs 0.65 crore. Interest cost increased 8% to Rs 217.97 crore. Depreciation moved up 12% to Rs 12.37 crore. The provisions of the company declined 21% to Rs 27.83 crore, leading to 7% rise in the PBT to Rs 100.35 crore. The effective tax rate was flat at 25.25% in Q1FY2026 compared to 25.31% in Q1FY2025. Provision for tax was expense of Rs 25.34 crore, compared to Rs 23.40 crore. Profit after tax increased 7% to Rs 75.01 crore.
Business highlights
AUM of the company has increased 19% to Rs 15697 crore end June 2025. The company as de-recognized Rs 770 crore of unsecured business loans pursuant to a 100% direct assignment transaction. Thus the share of secured loans has jumped to 96.1% at end June 2025 from 89.5% a quarter ago and 85.8% a year ago. Disbursements increased 19% to Rs 5933 crore in Q1FY2026. The company has network of 668 branches manned by 4797 employees end June 2025. Spreads declined on sequential basis to 7.7% in Q1FY2026 from 8.2% in Q4FY2025. The de-recognition of unsecured business loans impacted spreads by 40 bps in Q1FY2026. Branch count declined to 668, spread across 18 states and union territories. Gross Stage III increased was flat at 2.0% in Q1FY25 and the Net Stage III was also flat at 1.2%. Credit cost declined to 0.8% in Q1FY2026 from 1.0% in Q4FY25.Financial Performance FY2025
The income from operation of Fedbank Financial Services increased 29% to Rs 2035.79 crore in FY2025. Overall OPM improved to 67.7% in FY2025 from 67.5% in FY2024, leading to 29% rise in operating profit to Rs 1378.71 crore. Other income declined 4% to Rs 44.03 crore. Interest cost increased 26% to Rs 853.78 crore. Depreciation moved up 31% to Rs 48.85 crore. However, the provisions zoomed 229% to Rs 216.35 crore leading to 7% decline in the PBT to Rs 303.75 crore. The effective tax rate rose slightly to 25.9% in FY2025 compared to 25.4% in FY2024. Provision for tax was expense of Rs 78.57 crore, compared to Rs 83.38 crore. Profit after tax fell 8% to Rs 225.18 crore.| Fedbank Financial Services: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Income from Operations | 519.71 | 477.31 | 9 | 2035.79 | 1577.21 | 29 |
| OPM (%) | 68.9 | 68.8 | ? | 67.7 | 67.5 | ? |
| OP | 357.87 | 328.54 | 9 | 1378.71 | 1065.05 | 29 |
| Other Inc. | 0.65 | 13.68 | -95 | 44.03 | 45.79 | -4 |
| PBDIT | 358.52 | 342.22 | 5 | 1422.74 | 1110.84 | 28 |
| Interest | 217.97 | 202.41 | 8 | 853.78 | 679.56 | 26 |
| PBDT | 140.55 | 139.81 | 1 | 568.96 | 431.28 | 32 |
| Provisions | 27.83 | 35.18 | -21 | 216.36 | 65.85 | 229 |
| Depreciation | 12.37 | 11.00 | 12 | 48.85 | 37.35 | 31 |
| PBT before EO | 100.35 | 93.63 | 7 | 303.75 | 328.08 | -7 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 100.35 | 93.63 | 7 | 303.75 | 328.08 | -7 |
| Tax Expenses | 25.34 | 23.40 | 8 | 78.57 | 83.38 | -6 |
| PAT | 75.01 | 70.23 | 7 | 225.18 | 244.70 | -8 |
| EPS (Rs)* | 8.0 | 7.6 | ? | 6.0 | 6.6 | ? |
| Equity | 373.1 | 371.9 | ? | 372.7 | 369.4 | ? |
| Adj BV (Rs) | 67.3 | 58.0 | ? | 64.5 | 57.7 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit | ||||||
| Source: Capitaline Corporate Database | ||||||
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