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Federal Bank executive director Venkat Raman discussed Q2 results including net profit growth, margins, opex and ROA trajectory

By ScoutQuest · Mon 19 Oct 2026, 9:39 AM IST · 1 min read

Net profit growth YoY

45 percent

Operating profit growth YoY

35 percent

Net interest margin this quarter

3.32%

FCNR impact on margin

1 bps

Guided margin improvement per quarter

5 to 6 bps

Heard on business television between 09:48:57 - 09:51:57 IST.

• Net profit grew 45% YoY and operating profit grew 35% YoY, called one of the bank's best quarters.
• NIM at 3.32%, marginally impacted by FCNR by 1 bps versus last quarter; bank maintains guidance of 5-6 bps margin improvement per quarter.
• Cost-income ratio down 200 bps YoY to 52.08%; elevated opex attributed to tech transformation investments, new branches and actuarial valuation on retirals.
• ROA currently at 1.32%, targeting 1.5-1.6% ROA within a three-year journey set in February 2025, expecting to reach it in about six more quarters.
• Advances grew across segments: LAP grew 11%, business banking grew 7%, with gold loan and commercial banking also showing strong growth.

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