Federal Bank announced strong Q3 FY2026 results, marked by a record high Net Interest Income of ₹2,653 crs and Operating Profit of ₹1,729 crs. The bank’s CASA franchise scaled new peaks, with CASA ratio at 32.07%. Asset quality improved to a decadal best. The results reflect a durable growth strategy anchored in profitability and prudence.
Key Financial Highlights
Federal Bank reported a strong performance for Q3 FY2026, demonstrating robust fundamentals:
- Net Interest Income: ₹2,653 crs (Highest Ever)
- Operating Profit: ₹1,729 crs (Highest Ever)
- Fee Income: ₹896 crs
- ROA: 1.15%
- ROE: 11.68%
- EPS: ₹16.79
- BVPS: ₹145.76
- NIM: 3.18%
The bank’s NIM and ROA have recovered to December 2024 levels.
CASA Franchise Growth
The bank’s CASA franchise has shown significant growth:
- CASA Ratio: 32.07%
- CASA grew by 6.6% on a QoQ basis
- Resident SB book grew by 5.7% on a QoQ basis
- NRE SB grew by 4.6% on a QoQ basis
Asset Quality Improvement
Federal Bank’s asset quality has reached a decadal best:
- GNPA: 1.72%
- NNPA: 0.42%
- PCR: 75.14%
Advances and Deposits
The bank has demonstrated durable growth in both advances and deposits:
- Customer Assets: ₹2,65,722 Cr, YoY growth of 9%, QoQ growth of 5%
Credit Portfolio Distribution
The bank continues to see momentum in chosen medium yield segments. The credit portfolio includes Corporate, Commercial, and Retail Book.
Digital Transformation
The bank continues its digital transformation, with a focus on increasing digital transactions and active users on its platforms. As of December 2025:
- Transactions Serviced Digitally (Retail + Corporate): 93.81%
Ratings
Federal Bank’s Fixed Deposits and Certificate of Deposits continue to enjoy the highest ratings in their class from Crisil.
Source: BSE
