Federal Bank has announced its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors recommended a final dividend of Rs. 1.20 per equity share (60% of face value) for the 2025-26 financial year, pending shareholder approval. The bank reported strong performance, with an annual net profit of Rs. 4,117.32 crore on a standalone basis, demonstrating sustained growth in a challenging economic environment.
Financial Performance Highlights
For the financial year ended March 31, 2026, Federal Bank delivered robust financial results. The standalone annual net profit reached Rs. 4,117.32 crore, compared to Rs. 4,051.89 crore in the previous year. For the final quarter (Q4) ending March 31, 2026, the standalone net profit was Rs. 1,259.10 crore. The bank maintained a strong Capital Adequacy Ratio of 17.25% under Basel III norms, reflecting a stable capital position.
Dividend Payout
The Board of Directors has recommended a final dividend of Rs. 1.20 per equity share, representing a 60% payout on a face value of Rs. 2.00 per share. This recommendation is subject to the approval of shareholders at the upcoming Annual General Meeting of the Bank.
Consolidated Results
On a consolidated basis, which includes the performance of subsidiaries Fedbank Financial Services Limited, Federal Operations and Services Limited, and the associate Ageas Federal Life Insurance Company Limited, the group reported an annual net profit of Rs. 4,345.30 crore for the year ended March 31, 2026. This reflects the diversified growth strategy across the group’s financial services portfolio.
Strategic Acquisitions
During the fiscal year, Federal Bank further solidified its stake in the insurance sector by acquiring 3.20 crore equity shares of Ageas Federal Life Insurance Company Limited for Rs. 9,744 lakhs. Following this transaction, the bank now holds a 30% shareholding in the insurance company on a fully diluted basis, marking a significant strategic move to enhance its long-term value proposition.
Source: BSE
