Federal Bank
NII growth improves as NIM rises: Interest income increased 1% to Rs 6867.50 crore, while interest expenses fell 4% to Rs 4214.77 crore in Q3FY2026. NII improved 9% to Rs 2652.73 crore in Q3FY2026.
Margins improve: The bank has shown 44 bps YoY decline in cost of deposits to 5.48%, while yield on advances declined 65 bps YoY to 8.74% in Q3FY2026. NIM has improved 7 bps YoY to 3.18%, while rose 12 bps qoq to 3.18% in Q3FY2026.
Highest ever core fee income: The non-interest income of the bank increased 20% to Rs 1100.29 crore in Q3FY2026. Bank has posted strong 21% growth in core fee income to touch highest ever level of Rs 860 crore, while the treasury income improved 37% to Rs 126 crore and recoveries and other income rose 13% to Rs 78 crore. However, the forex income fell 18% to Rs 36 crore in Q3FY2026.
Expense ratio rises: The operating expenses of the bank increased 14% to Rs 2023.69 crore, as other expenses moved up 18% to Rs 1175.04 crore, while employee expenses rose 8% to Rs 848.65 crore in Q3FY2026. Cost to income ratio rose slightly to 53.9% in Q3FY2026 compared with 53.1% in Q3FY2025. Operating Profit moved up 10% to Rs 1729.33 crore.
Loan loss provisions decline: The bank has shown 14% increase in provisions to Rs 332 crore due to rebound in standard asset provisions to Rs 47 crore. However, the loan loss provisions fell 14% to Rs 294 crore, while the bank has written back investment provisions of Rs 7 crore and other provisions Rs 2 crore in Q3FY2026.
PBT increased 9% to Rs 1396.95 crore in Q3FY2026. Effective tax rate increased to 25.5% in Q3FY2026 from 25.2% in Q3FY2025. Net Profit increased 9% YoY to Rs 1041.21 crore in Q3FY2026.
Asset quality improves: The bank has improved asset quality in Q3FY2026.
The fresh slippages of loans dipped to Rs 443 crore in Q3FY2026 compared with Rs 584 crore in previous quarter and Rs 498 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 246 crore, while the write-off of loans was at Rs 282 crore in Q3FY2026. The standard restructured loan book of the bank declined to Rs 1140 crore end December 2025 compared to Rs 1208 crore a quarter ago. Provision coverage ratio increased to 75.14% at end December 2025 compared to 73.45% a quarter ago and 74.21% a year ago. The capital adequacy ratio of the bank stood at 15.2% with Tier I ratio at 13.9% at end December 2025. The risk weighted assets of the bank has increased 12% YoY to Rs 220490 crore end December 2025,| Asset Quality Indicators: Federal Bank | |||||||||
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| Dec-25 | Sep-25 | Jun-25 | Mar-25 | Dec-24 | Variation |
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| QoQ | YTD | YoY |
| ||||||
| Gross NPA (Rs Crore) | 4446.86 | 4532.01 | 4669.66 | 4375.54 | 4553.31 | -2 | 2 | -2 |
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| Net NPA (Rs Crore) | 1068.04 | 1165.16 | 1157.64 | 1040.38 | 1131.17 | -8 | 3 | -6 |
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| % Gross NPA | 1.72 | 1.83 | 1.91 | 1.84 | 1.95 | -11 | -12 | -23 |
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| % Net NPA | 0.42 | 0.48 | 0.48 | 0.44 | 0.49 | -6 | -2 | -7 |
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| % PCR | 75.14 | 73.45 | 74.41 | 75.37 | 74.21 | 169 | -23 | 93 |
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| % CRAR - Basel III | 15.20 | 15.71 | 16.03 | 16.40 | 15.16 | -51 | -120 | 4 |
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| % CRAR - Tier I - Basel III | 13.88 | 14.37 | 14.69 | 15.04 | 13.78 | -49 | -116 | 10 |
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| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||||
Business Highlights:
Business growth improves: The business of the bank has increased at an accelerated pace of 8% YoY to Rs 542475 crore end December 2025, as advances growth gained to 5% to Rs 244679 crore and deposits growth improved to 12% to Rs 297796 crore at end December 2025. With the slower growth in advances, the credit to deposit ratio eased to 82.2% at end December 2025 from 87.8% at end December 2024.
Robust growth in CASA deposits: The CASA deposits of the bank increased 19% YoY to Rs 95498 crore at end December 2025. The current account deposits moved up 31% to Rs 19233 crore, while saving account deposits increased 16% to Rs 70358 crore end December 2025. The CASA ratio improved to 32.1% at end December 2025 compared to 30.2% at end December 2024, while increased from 31.0% at end September 2025. The term deposits have increased 9% to Rs 202298 crore end December 2025. The NRE deposits have moved up 10% to Rs 87402 crore end December 2025.
Improved loan growth: Within the loan book, the retail loans increased 5% YoY to Rs 108471 crore at end December 2025, while credit to agriculture increased 4% to Rs 8464 crore and MSME credit increased 11% to Rs 25724 crore. The corporate credit has surged 19% to Rs 123043 crore end December 2025. The share of retail, agriculture and MSME (RAM) improved to 58.3% at end December 2025 compared to 57.7% at end December 2024, while that of corporate loans eased to 41.7% at end December 2025 compared to 42.3% at end December 2024.
Investment book of the bank increased 8% YoY to Rs 71889 crore at end December 2025.
Branch expansion: The bank has added 6 branches and added 12 ATMs in Q3FY2026, taking overall tally to 1601 branches and 2094 ATM`s end December 2025.
Book value of the bank stood at Rs 146.5 per share at end December 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 141.7 per share at end December 2025.
Financial Performance 9MFY2026:
Bank has posted 5% decline in net profit to Rs 2858.22 crore in the nine months ended December 2025 (9MFY2026). The net interest income increased 6% to Rs 7484.80 crore, while non-interest income moved up 18% to Rs 3295.44 crore, leading net total income to increase 9% to Rs 10780.24 crore in 9MFY2026. The operating expenses increased 11% to Rs 5850.45 crore, while provision and contingencies jumped 84% to Rs 1095.63 crore. PBT declined 5% to Rs 3834.16 crore in 9MFY2026. The cost-to-income ratio rose to 54.3% in 9MFY2026 compared to 53.1% in 9MFY2025. An effective tax rate rose to 25.5% in 9MFY2026 compared to 25.2% in 9MFY2025. The net profit has declined 5% to Rs 2858.22 crore in 9MFY2026. ?| Federal Bank: Results | |||||||||
| Particulars | 2512 (3) | 2412 (3) | Var % | 2512 (9) | 2412 (9) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 6867.50 | 6808.73 | 1 | 20296.29 | 19716.89 | 3 | 26365.25 | 22188.26 | 19 |
| Interest Expended | 4214.77 | 4377.39 | -4 | 12811.49 | 12626.34 | 1 | 16897.26 | 13894.78 | 22 |
| Net Interest Income | 2652.73 | 2431.34 | 9 | 7484.80 | 7090.55 | 6 | 9467.99 | 8293.48 | 14 |
| Other Income | 1100.29 | 916.17 | 20 | 3295.44 | 2795.30 | 18 | 3801.25 | 3079.27 | 23 |
| Net Total Income | 3753.02 | 3347.51 | 12 | 10780.24 | 9885.85 | 9 | 13269.24 | 11372.75 | 17 |
| Operating Expenses | 2023.69 | 1778.05 | 14 | 5850.45 | 5250.12 | 11 | 7168.11 | 6198.27 | 16 |
| Operating Profits | 1729.33 | 1569.46 | 10 | 4929.79 | 4635.73 | 6 | 6101.13 | 5174.48 | 18 |
| Provisions & Contingencies | 332.38 | 292.33 | 14 | 1095.63 | 594.95 | 84 | 733.06 | 196.10 | 274 |
| Profit Before Tax | 1396.95 | 1277.13 | 9 | 3834.16 | 4040.78 | -5 | 5368.07 | 4978.38 | 8 |
| Provision for tax | 355.74 | 321.69 | 11 | 975.94 | 1019.12 | -4 | 1316.18 | 1257.78 | 5 |
| PAT | 1041.21 | 955.44 | 9 | 2858.22 | 3021.66 | -5 | 4051.89 | 3720.60 | 9 |
| EPS*(Rs) | 16.9 | 15.6 | ? | 15.5 | 16.4 | ? | 16.5 | 15.3 | ? |
| Equity | 492.5 | 491.1 | ? | 492.5 | 491.1 | ? | 491.2 | 487.2 | ? |
| Adj BV (Rs) | 141.7 | 126.4 | ? | 141.7 | 126.4 | ? | 131.3 | 113.4 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 2, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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