Federal Bank’s Q2 FY26 investor presentation highlights strong operating fundamentals. Key metrics include a ROA of 1.09%, ROE of 11.01% and EPS of ₹15.42. The bank reported a NIM of 3.06% and a Slippage Ratio of 0.94%, demonstrating effective risk management and profitability. The Fee Income stood at ₹886 Cr, emphasizing a diversified income stream and weathering macro challenges with steady execution.
Strong Financial Performance
Federal Bank showcases robust financial results for Q2 FY26, reflecting a stable and efficient operational framework:
- ROA: 1.09%
- ROE: 11.01%
- EPS: ₹15.42
- BVPS: ₹141.58
Balance Sheet and Key Ratios
The bank’s balance sheet remains strong, complemented by key financial ratios:
- Balance Sheet: ₹3,56,080 Cr
- CRAR: 15.71%
- PCR: 73.45%
- NIM: 3.06%
- Cost to Income: 54.04%
- Credit Cost: 50 bps
- Slippage Ratio: 0.94%
Asset Quality and Business Growth
Federal Bank continues to maintain excellent asset quality and exhibits steady growth across key business parameters:
- Decadal best Gross NPA at 1.83%.
- CASA franchise scaling new peaks, showcasing effective retail deposit management.
- Fee momentum accelerating, driven by diversified income streams.
- Asset engine reshaped for better yield, demonstrating strategic asset allocation.
Digital Transformation and Expansion
The bank is focused on digital transformation and footprint expansion:
- Enhanced digital capabilities through strategic partnerships to provide excellent customer value.
- Expanded reach in both urban and rural areas, enhancing customer service and support.
- Digitization initiatives driving efficiency and customer engagement.
Strategic Focus
Federal Bank remains committed to:
- Maintaining a durable growth strategy anchored in profitability and prudence.
- Diversifying advances and strengthening the balance sheet.
- Delivering sustained profitability and enhancing stakeholder value.
Source: BSE