FEDERAL BANK LTD. Q4 FY26 Results

Summary

Federal Bank reported a robust performance for Q4 FY26, with net profit reaching ₹1,259.10 crore, a sequential increase of 20.93%. For the full financial year, the net profit was ₹4,117.32 crore. The quarter was characterized by margin expansion, a surge in fee income to ₹990.92 crore (up 10.54% QoQ), and asset quality reaching historical benchmarks with GNPA at 1.62% and NNPA at 0.20%. Key milestones included the NR deposit book and CASA balances both crossing the ₹1 lakh crore mark, alongside total business growing 4.54% QoQ to ₹5,78,503.76 crore. MD & CEO Mr. KVS Manian highlighted the successful liability restructuring, optimized cost of funds, and return of RoA and NIMs to pre-rate cut levels, positioning the bank for future growth.

Key Highlights

1. 1

   Net profit for Q4 FY26 grew by 20.93% sequentially to ₹1,259.10 crore, contributing to a full financial year profit of ₹4,117.32 crore.

2. 2

   The Bank's NR deposit book achieved a significant milestone by crossing ₹1 lakh crore, reaching ₹1,02,619.69 crore, an increase of 7.04% QoQ.

3. 3

   CASA balances also surpassed the ₹1 lakh crore mark, growing by 8.26% QoQ to ₹1,03,390.30 crore, with the CASA ratio improving by 271 bps YoY to 32.94%.

4. 4

   Asset quality reached historic benchmarks, with Gross Non-Performing Assets (GNPA) at a record low of 1.62% and Net Non-Performing Assets (NNPA) at 0.20%.

5. 5

   Fee income demonstrated strong growth, reaching ₹990.92 crore, up 10.54% QoQ, while the Cost-to-Income ratio improved by 665 bps sequentially to 47.28%.

6. 6

   Total Business expanded by 4.54% QoQ, amounting to ₹5,78,503.76 crore, supported by a 3.65% QoQ rise in Gross Advances to ₹2,68,369.03 crore and a 5.41% QoQ increase in Total Deposits to ₹3,13,909.39 crore.