| Metric | Value (₹ Cr) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 7.4K | 2.0% | 1.3% |
| Total Income | 8.5K | 2.2% | 3.8% |
| Expenditure | 6.6K | 1.1% | 1.4% |
| PBT | 1.5K | 9.8% | 18.1% |
| Net Profit | 1.1K | 10.3% | 18.5% |
| OPM | 25.57% | 1.04pp | |
| NPM | 13.22% | 0.97pp | 1.64pp |
| EPS | 4.45 | 10.2% | 15.6% |
Federal Bank Reports Record Q3 with All-Time High NII, Operating Profit, and Fee Income; Margins Rise and Asset Quality Strengthens
16 Jan 2026 · 16 Jan, 12:51 pm
Summary
Federal Bank reported a strong Q3 performance for the quarter ended 31 December 2025, marked by sustained margin expansion, improving profitability, disciplined cost management, and further strengthening of asset quality. The results reflect the Bank’s continued focus on building a stable, margin-led, and resilient franchise.
Key Highlights
- 1
Net profit stood at ¥1,041.21 crore, up 9% QoQ
- 2
Net Interest Income (NII) grew to $2,652.73 crore, up 6.31% QoQ and 9.11% Yoy
- 3
Net Interest Margin (NIM) expanded 12 bps QoQ to 3.18%
- 4
GNPA and NNPA declined to decadal lows
- 5
Funding costs declined further, with cost of deposits at 5.48% and overall cost of funds at 5.50%
- 6
Total business stood at $5,53,364.49 crore, registering 3.71% QoQ and 11.40% YoY growth
- 7
Advances rose to %2,55,568.67 crore, up 4.46% QoQ and 10.94% YoY
- 8
Deposits increased to $2,97,795.82 crore, growing 3.07% QoQ and 11.80% YoY
- 9
CASA ratio improved to 32.07%, up 106 bps QoQ and 191 bps YoY
- 10
Feeincome stood at $896.47 crore, growing 18.57% YoY
- 11
Cost-to-income ratio improved to 53.92%
- 12
Asset quality strengthened further, with Gross NPA at 1.72% and Net NPA at 0.42%
- 13
ROA improved to 1.15% and ROE to 11.68%
- 14
Earnings per share (EPS) for the quarter stood at $16.79, up 8.89% QoQ
Management Comments
Mr. KVS Manian
Managing Director & CEO
Our Q3 performance reflects the continued strengthening of the Bank’s underlying fundamentals. The improvement in margins, reduction in funding costs, and sustained stability in asset quality are the direct outcome of the balance-sheet discipline and execution focus we have maintained over the past few quarters. We are seeing increasing benefits from a stronger liability franchise and a calibrated shift in our asset mix toward segments that deliver superior risk-adjusted returns. At the same time, cost discipline and prudent risk management remain central to how we operate. While competitive intensity remains high, our emphasis is on consistency and quality of earnings rather than headline growth. We believe this approach positions the Bank well to deliver sustainable performance across market cycles.
Informational and educational content only. Not investment advice.