Key Takeaways from the Share Price Surge

• Interest earned grew by 21% year-over-year (YoY) to ₹7,005.66 crore, primarily due to increased advances and higher investment income.
• The bank effectively managed expenses, with total expenses rising by 23.3% YoY to ₹6,346.10 crore, maintaining cost efficiency.
• Earnings per share (EPS) increased to ₹4.48, up from ₹4.29 in Q2 FY23, reinforcing consistent earnings growth for Federal Bank’s shareholders. 

In Q2 FY24, interest earned rose to ₹7,005.66 crore, a 21% increase from ₹5,791.24 crore in the same quarter last year. This growth was primarily driven by an increase in interest on advances which climbed to ₹5,667.31 crore, a rise of 20.8% YoY from ₹4,691.41 crore in Q2 FY23. 

Additionally, income from investments increased to ₹1,134.86 crore, marking a 27.2% YoY growth from ₹892.37 crore. Total income for the quarter reached ₹8,015.29 crore, up 22.4% YoY from ₹6,548.20 crore.

The bank also managed to maintain efficient cost control, with total expenses growing to ₹6,346.10 crore, up 23.3% YoY from ₹5,147.92 crore in Q2 FY23. Operating profit improved to ₹1,569.19 crore, a growth of 12% YoY from ₹1,400.28 crore, reflecting strong operational efficiency. 

Profit before tax (PBT) rose to ₹1,473.05 crore, a 9.8% YoY increase from ₹1,342.71 crore in Q2 FY23. Net profit after tax (PAT) stood at ₹1,104.46 crore, reflecting a 10.4% YoY growth compared to ₹1,000.16 crore in the same quarter last year. Additionally, the earnings per share (EPS) rose to ₹4.48, compared to ₹4.29 in Q2 FY23, underscoring solid profitability for Federal Bank.

About Federal Bank Limited

Incorporated in 1931 as Travancore Federal Bank Limited, The Federal Bank Limited provides a wide range of banking services, including retail and corporate banking, para banking activities like debit card issuance and third-party product distribution, as well as treasury and foreign exchange services. It is Kerala’s largest private sector bank and the state’s second-largest bank overall.

Key Takeaways from the MoU

• The MoU lays the groundwork for a 5 MTPA integrated steel plant in India, addressing rising steel demand.
• The partnership will explore joint efforts in battery materials, especially for EVs, and renewable energy solutions to power the plant.
• This collaboration between JSW and POSCO will support India’s steel production goals and contribute to sustainability efforts in both India and South Korea.

This partnership aims to leverage the expertise of both companies to boost India’s industrial and sustainability capabilities.

The MoU includes proposals for setting up an integrated steel plant in India, initially aimed at producing 5 million tonnes per annum. This will respond to increasing demand in India. This demand is growing rapidly with the economic growth in the country and provides distinctive opportunities in India's steel industry.

The opportunities in battery material development for electric vehicles and renewable energy for captive consumption in the new steel facility by JSW and POSCO are also going to be pursued. This perfectly falls into line with the ongoing energy transition and green energy drive by India.

The MoU was signed at the JSW Group corporate headquarters in Mumbai by JSW Group Chairman Sajjan Jindal, POSCO Chairman Chang In-hwa and top executives from both firms. The partnership brings JSW's established manufacturing base and robust project execution expertise to the table along with POSCO's technological competence for innovative developments in the Indian steel and renewable energy industries.

Mr. Sajjan Jindal, Chairman of JSW Group, said, “This MoU with POSCO marks a significant step forward in our journey to contribute to the Indian steel industry. As one of the world’s fastest-growing economies, India presents tremendous opportunities for sustainable growth, and our partnership with POSCO strengthens JSW’s commitment to drive that transformation. This JV also entails collaboration for renewable energy for a state-of-the-art integrated steel plant and for setting up an EV ecosystem in India. Together, we aim to set a benchmark in technology and sustainability that can shape the future of manufacturing in India and beyond.” 

Commenting on the collaboration, Mr. Chang In‐hwa, Chairman of POSCO said, "We are delighted to strengthen our ties with JSW Group. This collaboration will contribute significantly to the economic development of Korea and India and drive our joint efforts towards a more eco-friendly and sustainable future." 

About JSW Group

JSW Group is a $24 billion Indian conglomerate with a broad portfolio spanning sectors such as steel, energy, infrastructure, cement, paints, real estate, e-platforms, mobility, defense, sports, and venture capital. Its flagship entity, JSW Steel, operates multiple integrated steel facilities across India, the U.S., and Italy, with a total production capacity of 35.7 MTPA (including 5 MTPA in progress). The Group’s second-largest listed entity, JSW Energy, ranks as a top independent power producer with a platform capacity of 19.2 GW. Recently, JSW expanded into electric vehicles and battery technology with a stake in MG Motors India, reinforcing its commitment to sustainable growth through green energy, electric mobility, and advanced technologies.

Key Takeaways from the Partnership

• The partnership aligns with IndusInd Bank's focus on renewable energy financing, including its Indus Solar rooftop loans, to support sustainable business growth.
• Tata Power Renewables has facilitated ₹4,200 crore in solar financing, installed over 2.5 GW of solar rooftops, and anticipates offsetting 51.67 million tons of CO₂ over 25 years.
• Backed by 34 years in the solar sector, TPREL’s robust network spans 500 channel partners and over 300 cities, underscoring its leadership in India’s renewable energy transition.

This partnership aims to encourage solar energy adoption among MSEs by offering affordable financing options.

Through this alliance, MSEs can access loans ranging from ₹10 lakh to ₹2 crore, subject to IndusInd Bank's credit approval. The loans come with a 20% margin requirement, competitive interest rates, and flexible terms of up to 7 years, supporting businesses in adopting solar solutions without the burden of upfront capital.

This collaboration underscores IndusInd Bank's commitment to sustainability, complementing its solar-focused financing efforts like the Indus Solar rooftop loan initiative. This focus on renewable energy financing allows businesses to optimize costs, increase efficiency, and align with sustainable goals.

TPREL has facilitated over ₹4,200 crore in financing for solar installations through partnerships with over 20 financial institutions, including PSUs, private banks, and NBFCs, making it a leader in India’s solar sector. The company has installed over 2.5 GW of solar rooftops, serving more than 100,000 customers. Over the next 25 years, TPREL’s initiatives are expected to offset 51.67 million tons of CO₂, equivalent to planting 1.8 million trees.

With 34 years of expertise in solar energy, Tata Power Renewables is setting benchmarks in India’s renewable energy sector. Through a network of 500 channel partners in over 300 cities, the company is committed to advancing India’s renewable energy goals with reliable solar technology and exceptional customer service.

Commenting on the partnership, Deepesh Nanda, CEO & MD, Tata Power Renewable Energy Limited, said, "Tata Power Renewables has been leading the green energy transition, and is committed to accelerating the path to India's Net-Zero by 2070. This commitment extends to empowering MSEs, which are the backbone of India's economy, with accessible and affordable solar energy solutions. Through our partnership with IndusInd Bank, we are facilitating easy financing opportunities for MSEs to adopt solar energy, which will not only help them reduce operational costs but also actively contribute to the green energy transition." 

Speaking on the partnership, Sanjeev Anand, Head of Corporate, Commercial, and Rural Banking, at IndusInd Bank, added, “We recognize that our impact extends well beyond financial services, and our partnership with Tata Power Renewable Energy Limited underscores our commitment towards integrating Environmental, Social, and Governance (ESG) factors into our business and operations. This collaboration reflects our endeavour to support MSEs through sustainable finance practices. By offering loans ranging from ₹ 10 lakh to ₹ 2 crore with flexible terms and competitive rates, we aim to facilitate investments in solar energy. This initiative aligns with our broader vision of environmental responsibility and supports India’s sustainability goals, including the net-zero target by 2070.” 

About Tata Power Company Limited

Tata Power Company Ltd is India's largest vertically integrated power company focused on electricity generation, transmission, and distribution. It is committed to renewable energy and seeks to continue its pursuit of producing 100% clean electricity. Its total energy capacity is now at 14,381 MW comprising 3,191 MW of solar, 1,007 MW of wind, and 880 MW of hydro; renewable capacity under construction amounts to 3,760 MW. The company operates more than 4,900 public EV charging points across 442 cities and will look to touch 1 lakh EV charging stations by 2025. Tata Power also has a significant presence in solar EPC projects with an order book running into over ₹18,700 crore.

About IndusInd Bank Limited

Incorporated in 1994, IndusInd Bank Limited is a commercial bank that provides a diverse range of banking products and financial services to corporate and retail clients, along with treasury operations. As the first private sector bank established in India post-liberalization, it began under the leadership of Srichand P Hinduja, chairman of the Hinduja Group, primarily to serve the NRI community. The bank operates across India, including at International Financial Service Centres.

Key Takeaways from the Share Price Surge

• Interest earned grew by 21% year-over-year (YoY) to ₹7,005.66 crore, primarily due to increased advances and higher investment income.
• The bank effectively managed expenses, with total expenses rising by 23.3% YoY to ₹6,346.10 crore, maintaining cost efficiency.
• Earnings per share (EPS) increased to ₹4.48, up from ₹4.29 in Q2 FY23, reinforcing consistent earnings growth for Federal Bank’s shareholders. 

In Q2 FY24, interest earned rose to ₹7,005.66 crore, a 21% increase from ₹5,791.24 crore in the same quarter last year. This growth was primarily driven by an increase in interest on advances which climbed to ₹5,667.31 crore, a rise of 20.8% YoY from ₹4,691.41 crore in Q2 FY23. 

Additionally, income from investments increased to ₹1,134.86 crore, marking a 27.2% YoY growth from ₹892.37 crore. Total income for the quarter reached ₹8,015.29 crore, up 22.4% YoY from ₹6,548.20 crore.

The bank also managed to maintain efficient cost control, with total expenses growing to ₹6,346.10 crore, up 23.3% YoY from ₹5,147.92 crore in Q2 FY23. Operating profit improved to ₹1,569.19 crore, a growth of 12% YoY from ₹1,400.28 crore, reflecting strong operational efficiency. 

Profit before tax (PBT) rose to ₹1,473.05 crore, a 9.8% YoY increase from ₹1,342.71 crore in Q2 FY23. Net profit after tax (PAT) stood at ₹1,104.46 crore, reflecting a 10.4% YoY growth compared to ₹1,000.16 crore in the same quarter last year. Additionally, the earnings per share (EPS) rose to ₹4.48, compared to ₹4.29 in Q2 FY23, underscoring solid profitability for Federal Bank.

About Federal Bank Limited

Incorporated in 1931 as Travancore Federal Bank Limited, The Federal Bank Limited provides a wide range of banking services, including retail and corporate banking, para banking activities like debit card issuance and third-party product distribution, as well as treasury and foreign exchange services. It is Kerala’s largest private sector bank and the state’s second-largest bank overall.