Federal Bank has announced a record net profit of ₹1,386.09 crore for the quarter ending 30 September 2026, marking a 45.10% increase compared to the same period last year. This achievement represents the highest quarterly profit in the bank’s history, driven by robust growth in core earnings. The bank reported a significant rise in net interest income by 26.38% and fee income by 31.86%, while both gross and net non-performing assets (NPA) reached their lowest levels in a decade.
The bank’s total business has now surpassed ₹6.4 lakh crore, with gross advances exceeding ₹3 lakh crore, reflecting a year-on-year growth of 21.66%. The net interest margin expanded by 26 basis points to 3.32%, and the cost of funds fell by 40 basis points. The bank’s asset quality has shown remarkable improvement, with gross NPA decreasing to 1.32% and net NPA to 0.17%, indicating a stable and resilient financial position.
Federal Bank’s CASA (Current Account Savings Account) balances increased by 22.56% year-on-year, reaching ₹1,09,803.15 crore, and the CASA ratio improved by 103 basis points to 32.04%. The bank’s non-resident deposits also saw substantial growth, with NRE and ONR deposits rising by 26.63% and FCNR(B) deposits surging by 239.14%. The bank’s chosen segments, such as gold loans, loan against property, and credit cards, have continued to deliver strong growth, contributing to the overall positive performance.
In terms of operational efficiency, the cost-to-income ratio improved by 196 basis points to 52.08%, while return on assets and return on equity expanded by 23 and 256 basis points, respectively. The bank’s capital adequacy ratio stands at 16.84%, with Tier I capital at 15.76%, reflecting a robust capital position. Analysts view Federal Bank’s performance as a testament to its strategic focus on core earnings and asset quality, positioning it well for sustained growth in the coming quarters.
