Federal Bank delivered another strong quarter for the period ended 30 September 2025, marked by all-time highs in both Net Interest Income and Fee Income, and consistent growth across core metrics.
Key Highlights (Q2 FY26):
- Record NII at ₹2,495 crore, reflecting stable margins.
- Highest-ever fee income at ₹886 crore, underscoring continued momentum in non-interest revenue streams.
- CASA ratio improved to 31.01%, up 94 bps YoY; CASA deposits grew 10.71% YoY to ₹89,591 crore.
- Operating profit stood at ₹1,644.17 crore, up 5.65% QoQ.
- Net profit rose 10.85% QoQ to ₹955.26 crore, driven by robust operating income and efficient cost management.
- ROA at 1.09% and ROE at 11.01%, maintaining healthy profitability metrics.
- Net Interest Margin improved 12 bps QoQ to 3.06%.
- Total deposits increased 7.36% YoY, while net advances grew 6.23% YoY, reflecting balanced franchise growth.
- Asset quality remained among the best in the decade with GNPA at 1.83% and NNPA at 0.48%.
- CRAR stood strong at 15.71%, ensuring a comfortable capital position.
- Provision Coverage Ratio remained robust at 73.45%.
WORKING RESULTS AT A GLANCE (Rs.in Cr)
| Particulars | Results | ||
| 30-09-2025 | 30-09-2024 | Growth in %/ bps | |
| Total Business | 533,576.64 | 499,418.83 | 🡹6.84% |
| Total Deposits | 288,919.58 | 269,106.59 | 🡹7.36% |
| Net Advances | 244,657.06 | 230,312.24 | 🡹6.23% |
| Operating Profit | 1,644.17 | 1,565.36 | 🡹5.03% |
| Total Income | 7,824.33 | 7,541.23 | 🡹3.75% |
| Fee Income | 885.54 | 783.67 | 🡹13.00% |
| Other Income | 1,082.17 | 963.95 | 🡹12.26% |
| Gross NPA | 1.83 | 2.09 | -26 |
| Net NPA | 0.48 | 0.57 | -9 |
Operating Review
Total Business
Total Business of the Bank reached Rs. 533,576.64 Cr. registering a growth of 6.84% YoY.
Credit Growth
On the Asset side, Net advances increased from Rs. 2,30,312.24 Cr. as on 30th September 2024 to Rs. 2,44,657.06 on 30th September 2025, a growth of over 6.23% YoY.
Deposit Growth
Total Deposits increased from Rs. 269,106.59 Cr. as on 30th September 2024 to Rs. 288,919.58 Cr as on 30th September 2025, registering a growth of 7.36 %.
Operating Profit & Net Profit
The Bank registered Operating Profit of Rs. 1,644.17 Cr and Net Profit of Rs. 955.26 Cr for the quarter ended 30th September 2025.
Income & Margins
Net Interest Income grew 5.41% YoY from Rs. 2,367.23 Cr to Rs. 2,495.24 Cr for the quarter ended on 30th September 2025. Total income of the Bank for the quarter grew by 3.75% YoY to reach Rs. 7,824.33 Cr. Earnings per share (EPS) annualized is Rs. 15.42 for the quarter. Net Interest Margin is at 3.06.
Key Ratios
ROA & ROE of the Bank for the quarter stood at 1.09% and 11.01% respectively.
Resilient Asset Quality
Gross NPA of the Bank as at the end of Q2 FY26 stood at Rs. 4,532.01 Cr, which as a percentage to Gross Advances stood at 1.83%. The Net NPA and Net NPA as a percentage to Net Advances, as on 30th September 2025 stood at Rs. 1,165.16 Cr and 0.48% respectively. Provision Coverage Ratio excluding Technical Write Off was 73.45 %.
Net Worth & Capital Adequacy
Net worth of the Bank increased by 11.93% YoY, from Rs. 31,108.20 Cr to Rs. 34,819.84 Cr, as on 30th September 2025. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines stood at 15.71 % as at the end of the quarter.
Footprint
The total number of banking outlets come to 1595. The number of ATMs/ Recyclers as on 30th September 2025 is 2082 (incl mobile ATMs).
OTHER FINANCIAL INDICATORS (Rs. in Cr)
| Capital | |||
| Equity Capital | 491.88 | 490.45 | 🡹0.29% |
| Net Worth | 34,819.84 | 31,108.20 | 🡹11.93% |
| Capital Adequacy (%) | 15.71 | 15.20 | |
| Tier I (%) | 14.37 | 13.82 | |
| Tier II (%) | 1.34 | 1.38 |
