Federal Bank reported a 10.85% increase in net profit QoQ, driven by record-high Net Interest Income (NII) and fee income. NII reached ₹2,495 crore, while fee income hit ₹886 crore. The bank’s asset quality remained strong, with GNPA at 1.83% and NNPA at 0.48%. Total business reached ₹533,576.64 crore, a 6.84% YoY growth.
Financial Performance Highlights
Federal Bank announced a strong financial performance, marked by record achievements in key areas:
- Net Interest Income (NII) reached a record ₹2,495 crore, reflecting stable margins.
- The highest-ever fee income of ₹886 crore highlights momentum in non-interest revenue.
- Operating profit stood at ₹1,644.17 crore, a 5.65% increase QoQ.
- Net profit increased by 10.85% QoQ to ₹955.26 crore.
Key Financial Metrics
Several key metrics demonstrate the bank’s robust financial health:
- ROA stands at 1.09% and ROE at 11.01%.
- Net Interest Margin (NIM) improved by 12 bps QoQ to 3.06%.
- CASA ratio improved to 31.01%, up 94 bps YoY; CASA deposits grew 10.71% YoY to ₹89,591 crore.
Balance Sheet Growth
The bank has shown growth in both deposits and advances:
- Total deposits increased by 7.36% YoY.
- Net advances grew by 6.23% YoY.
- Total Business reached ₹533,576.64 Cr, registering a growth of 6.84% YoY.
Asset Quality
Federal Bank maintained strong asset quality:
- GNPA stood at 1.83% and NNPA at 0.48%.
- CRAR remained strong at 15.71%.
- Provision Coverage Ratio stood at 73.45%.
Q2 FY26 Results Overview
The bank’s key results for the quarter ended September 30, 2025 (Q2 FY26) are as follows:
Total Business: ₹533,576.64 Cr (6.84% growth)
Total Deposits: ₹288,919.58 Cr (7.36% growth)
Net Advances: ₹244,657.06 Cr (6.23% growth)
Operating Profit: ₹1,644.17 Cr (5.03% growth)
Net Profit: ₹955.26 Cr
Source: BSE
