Federal Bank: Net profit stood at ₹1,041.21 crore, up 9% QoQ

Mumbai, 16 JANUARY: Federal Bank reported a strong and well-rounded performance for the quarter ended 31 December 2025 (Q3 FY26), marked by sustained margin expansion, improving profitability, disciplined cost management, and further strengthening of asset quality. The results reflect the Bank’s continued focus on building a stable, margin-led, and resilient franchise.

Key Highlights – Q3 FY26

• Net profit stood at ₹1,041.21 crore, up 9% QoQ, supported by stronger core income and operating leverage.
• Net Interest Income (NII) grew to ₹2,652.73 crore, up 6.31% QoQ and 9.11% YoY.
• Net Interest Margin (NIM) expanded 12 bps QoQ to 3.18%, supported by liability mix improvement and asset repricing.
• NII, operating profit, and fee income each reached all-time highs, reflecting strong core earnings momentum.
• GNPA and NNPA declined to decadal lows, underscoring sustained improvement in asset quality and risk discipline.
• Funding costs declined further, with cost of deposits at 5.48% and overall cost of funds at 5.50%.
• Total business stood at ₹5,53,364.49 crore, registering 3.71% QoQ and 11.40% YoY growth.
• Advances rose to ₹2,55,568.67 crore, up 4.46% QoQ and 10.94% YoY, led by Commercial Banking and Corporate & Institutional Banking.
• Deposits increased to ₹2,97,795.82 crore, growing 3.07% QoQ and 11.80% YoY.
• CASA ratio improved to 32.07%, up 106 bps QoQ and 191 bps YoY; CASA balances grew 18.86% YoY.
• Fee income stood at ₹896.47 crore, growing 18.57% YoY, strengthening the quality of earnings.
• Cost-to-income ratio improved to 53.92%, reflecting continued operating leverage.
• Asset quality strengthened further, with Gross NPA at 1.72% and Net NPA at 0.42%.
• Provision Coverage Ratio (excluding TWO) improved to 75.14%.
• ROA improved to 1.15% and ROE to 11.68%.
• Earnings per share (EPS) for the quarter stood at ₹16.79, up 8.89% QoQ.

Commenting on the performance, Mr. KVS Manian, Managing Director & CEO, said: Our Q3 performance reflects the continued strengthening of the Bank’s underlying fundamentals. The improvement in margins, reduction in funding costs, and sustained stability in asset quality are the direct outcome of the balance-sheet discipline and execution focus we have maintained over the past few quarters.

Working Results at a glance                                                                                          

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