Federal Bank Reports Record-High NII & Fee Income; Net Profit Rises 10.85% QoQ for Q2 FY26
Federal Bank reported record-high Net Interest Income and Fee Income for Q2 FY26. Net profit rose 10.85% QoQ to ₹955.26 crore, with improved asset quality and strong capital adequacy.
This is a quarterly financial results announcement detailing strong performance across key metrics, including record NII and fee income, and double-digit net profit growth, which is highly material for investors and reflects the company's financial health.
The announcement reports record-high Net Interest Income and Fee Income, a significant 10.85% QoQ rise in net profit, improved CASA ratio, and maintained strong asset quality and capital adequacy, all indicating robust financial health.
* The Federal Bank Limited announced strong unaudited financial results for the quarter and half year ended September 30, 2025, reporting record-high Net Interest Income (NII) and Fee Income. * Key Highlights (Q2 FY26): * Record NII at ₹2,495 crore, reflecting stable margins. * Highest-ever fee income at ₹886 crore, indicating strong non-interest revenue streams. * Net profit rose 10.85% QoQ to ₹955.26 crore, driven by robust operating income and efficient cost management. * Operating profit stood at ₹1,644.17 crore, up 5.65% QoQ. * Net Interest Margin improved 12 bps QoQ to 3.06%. * CASA ratio improved to 31.01%, up 94 bps YoY; CASA deposits grew 10.71% YoY to ₹89,591 crore. * Total deposits increased 7.36% YoY to ₹288,919.58 crore. * Net advances grew 6.23% YoY to ₹244,657.06 crore. * Asset quality remained strong with Gross NPA at 1.83% and Net NPA at 0.48%. * Capital Adequacy Ratio (CRAR) stood strong at 15.71%. * Provision Coverage Ratio remained robust at 73.45%. * Return on Assets (ROA) was 1.09% and Return on Equity (ROE) was 11.01%. * Earnings per share (EPS) annualized for the quarter was ₹15.42. * Management Commentary: Mr. KVS Manian, Managing Director & CEO, expressed conviction about the bank's direction, highlighting strategic reorientations strengthening its foundation. He noted sustained CASA franchise growth, thoughtful broadening of asset mix, strong double-digit sequential fee income growth, and solid asset quality supported by prudent risk management. * The bank's total business reached ₹533,576.64 crore, registering a growth of 6.84% YoY. * Net worth increased by 11.93% YoY to ₹34,819.84 crore as on September 30, 2025. * The bank's footprint includes 1595 banking outlets and 2082 ATMs/Recyclers as of September 30, 2025. * An investor presentation is separately available on the bank's website.
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The Federal Bank Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. 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.