Federal Bank Q4 FY26 Earnings Call Transcript Released; Highest Ever Quarterly Profit
Federal Bank reported its Q4 FY26 results with a record net profit of ₹1,145 crores. CASA crossed ₹1 lakh crore, and NRE deposits also reached ₹1 lakh crore. Gross advances grew 13% YoY. Fee income rose 24% YoY to ₹990.92 crores. GNPA stood at 1.62% and NNPA at 0.37%.
The news concerns the financial results of a major bank, including record profits and significant growth in deposits and advances, which are material information for investors and the market.
The announcement details a record quarterly profit, significant growth in key metrics like CASA, NRE deposits, and advances, alongside improved asset quality and fee income, indicating strong financial performance.
The Federal Bank Limited has announced the release of the transcript for its earnings call concerning the audited financial results for the quarter and year ended March 31, 2026. The transcript is available on the bank's website and was submitted to the stock exchanges within the prescribed timeline.
During the earnings call, held on April 29, 2026, the management, including MD & CEO Mr. KVS Manian and ED & CFO Mr. Venkatraman Venkateswaran, discussed the bank's strong operational performance for the quarter and the year. Key highlights included a record quarterly net profit of ₹1,145 crores, representing a nearly 10% sequential growth. This was driven by healthy Net Interest Income (NII), fee income, and disciplined cost management.
The bank achieved significant milestones in its liability franchise, with CASA balances crossing ₹1 lakh crore to ₹1,03,390 crores, showing an 8.26% sequential and nearly 21% year-on-year growth. NRE deposits also surpassed ₹1 lakh crore, reaching ₹1,02,620 crores, a 13.2% year-on-year increase. The CASA ratio improved to 32.94%, with the cost of deposits declining to 5.43%.
On the asset side, gross advances closed at ₹2,68,369 crores, up 3.65% sequentially and nearly 13% year-on-year. Growth was led by segments prioritized for superior risk-adjusted returns, including Commercial Banking (26% YoY), Gold Loans (26% YoY), and LAP (8% QoQ).
Fee income reached a record ₹990.92 crores, a 10.5% sequential and 24% year-on-year growth. The cost-to-income ratio improved to 52.86%. Asset quality remained strong, with GNPA at 1.62% and NNPA at 0.37%, both at decade bests. ROA increased to 1.24% and ROE improved to 12.47%.
Management expressed confidence in continued growth, emphasizing a focus on strengthening the liability franchise, growing in chosen segments, and maintaining tight control on credit quality and costs. They also discussed the ongoing journey of shifting the portfolio mix towards medium-yield assets and the potential for further deposit repricing in the coming quarters. The bank launched its wealth management business during the quarter and is making progress on reimagining its branch operating model.
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The Federal Bank Limited filed this with the NSE as a statutory disclosure, categorised under concall transcript released. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by The Federal Bank Limited. Read the original for the full detail.