Federal Bank reported a robust performance for the quarter ended March 31, 2026, with net profit rising to ₹1,259.10 crore, a 20.93% sequential increase. The bank achieved major milestones, including crossing ₹1 lakh crore in both CASA and NR deposits. Asset quality reached historical bests, with GNPA and NNPA at 1.62% and 0.20% respectively. Supported by margin expansion and growth in core segments, the bank remains well-positioned for continued strategic momentum.
Financial Performance Overview
Federal Bank has delivered a strong operational performance for the quarter ending March 31, 2026. The bank recorded a net profit of ₹1,259.10 crore, contributing to a total annual profit of ₹4,117.32 crore for the financial year. Key return metrics saw significant improvement, with return on assets (RoA) at 1.36% and return on equity (RoE) expanding to 13.69%. Net interest margins (NIM) have successfully reclaimed levels seen prior to recent rate cuts, reaching 3.74%.
Deposit Milestones and Liability Management
The bank successfully optimized its funding structure during the quarter. A notable achievement was reaching the ₹1 lakh crore milestone for both Non-Resident (NR) deposits and CASA (Current Account Savings Account) balances. Specifically, the NR deposit book grew to ₹1,02,619.69 crore, while CASA balances rose to ₹1,03,390.30 crore. These structural improvements contributed to a reduced overall cost of funds of 5.46%.
Strategic Growth and Asset Quality
Federal Bank’s asset quality continues to show resilience, with GNPA and NNPA hitting record lows of 1.62% and 0.20%. Growth was particularly strong in key segments, with Commercial Banking up 5.92% and Retail Banking up 3.21% sequentially. The bank also reported strong momentum in fee income, which reached ₹990.92 crore, representing a 10.54% growth over the previous quarter.
Operational Expansion
As part of its strategic network expansion, the bank added 39 new branches during the quarter. This expansion is guided by a data-driven approach designed to maximize operational efficiency and impact. Furthermore, the bank has improved its cost-to-income ratio to 47.28%, a sequential reduction of 665 basis points, highlighting effective operating leverage. The bank also successfully launched an in-house wealth management platform, marking a new chapter in its service offerings.
Source: BSE
