FBFederal Bank500469Quarterly results

Q2 FY27 net profit rises 45.10% to ₹1,386.09 crore; gross NPA at 1.32%, net NPA at 0.17%

Federal Bank press release on unaudited results for the quarter and half year ended September 30, 2026.

By ScoutQuest · Fri 16 Oct 2026, 1:38 PM IST · 2 min read

Net profit

₹1,386.09 crore, up 45.10% YoY — highest ever

Net interest income

₹3,153.40 crore, up 26.38%

Asset quality

Gross NPA 1.32%, Net NPA 0.17% — decadal lows

Federal Bank has placed on record its press release on the unaudited financial results for the quarter and half year ended September 30, 2026 (Q2 FY27).

Profitability

• Net profit was ₹1,386.09 crore, the highest ever, up 45.10% YoY and 17.77% QoQ.
• Operating profit grew 35.35% to ₹2,225.37 crore.
• Earnings per share rose 44.34% to ₹22.26.

Core earnings and margins

• Net interest income grew 26.38% to ₹3,153.40 crore, ahead of advances growth of 21.66%.
• Net interest margin expanded 26 bps YoY to 3.32%. Cost of funds fell 40 bps YoY; cost of deposits declined 39 bps YoY to 5.18%.
• Other income reached its highest-ever level of ₹1,490.44 crore, up 37.73% YoY. Fee income grew 31.86% to ₹1,167.71 crore, an all-time high of 1.11% of average earning assets.

Asset quality

• Gross NPA improved to 1.32% and net NPA to 0.17%, described as decadal lows; these are improvements of 51 bps and 31 bps YoY respectively.
• Provision coverage ratio (excluding TWO) strengthened to 86.78%, up 1,333 bps YoY. Coverage including technical write-offs stands at 94.49%; credit cost declined 19 bps YoY to 0.31%.
• Fresh slippages declined 27.48% YoY and the slippage ratio improved to 0.59% from 0.94% a year ago.
• The restructured book reduced to ₹1,389.55 crore, or 0.46% of gross advances.

Balance sheet

• Total business franchise stands at over ₹6.4 lakh crore, up 20.12% YoY.
• Total deposits stood at ₹3,42,693.56 crore, up 18.61% YoY. Gross advances crossed ₹3 lakh crore to reach ₹3,01,687.80 crore, up 21.66% YoY.
• CASA balances reached ₹1,09,803.15 crore, up 22.56% YoY and growing faster than the overall deposit book. The CASA ratio improved 103 bps YoY to 32.04%.
• NR deposits (NRE and ONR) reached ₹1,19,055.98 crore, up 26.63% YoY. FCNR(B) deposits rose 239.14% YoY to ₹23,547.72 crore.

Chosen segments

• Gold loans grew 37.13% YoY; LAP 32.21%; credit cards 28.27%; commercial banking 25.46%; CV/CE 21.74%.
• Corporate & institutional banking grew 17.19% YoY to ₹1,04,666.02 crore; business banking returned to growth at 12.39% YoY.

Operating efficiency and returns

• Cost-to-income ratio improved 196 bps YoY to 52.08%.
• RoA improved 23 bps YoY to 1.32%; RoE expanded 256 bps YoY to 13.57%; book value per share grew 17.48% YoY to ₹166.32.
• CRAR stands at 16.84% and Tier I at 15.76%, up 113 bps and 139 bps YoY respectively.
• 12 branches were added during the quarter, taking the network to 1,662 banking outlets.

Management comment

• Managing Director & CEO Mr. KVS Manian said the quarter marks several milestones — the highest-ever profit, total business over ₹6.4 lakh crore and advances crossing ₹3 lakh crore — with growth coming from the core.
• He said gross and net NPA are at their lowest levels in a decade, slippages are down 27% and provision coverage stands at 87%, with growth coming while keeping the quality of the book intact.

A presentation for investors is being placed separately on the Bank's website.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

About ScoutQuest · Logos provided by Logo.dev