FEDERAL BANK LTD.

Federal Bank Ltd has issued a clarification in response to a news item suggesting active acquisition talks. The bank stated that while it evaluates growth and expansion opportunities in the ordinary course of business, there are no material events or information requiring disclosure under SEBI (LODR) Regulations, 2015. The bank also confirmed it is not aware of any unannounced information that could explain trading movements.

Federal Bank reported a record net profit of ₹1,386.09 crore for the quarter ended September 30, 2026 (Q2 FY27), marking a 45.10% year-on-year increase. This achievement was driven by strong core franchise performance, with net interest income growing 26.38% and fee income reaching an all-time high, up 32.86%. The bank also saw significant improvements in asset quality, with Gross NPA at 1.32% and Net NPA at 0.17%, both decadal lows. Total business crossed ₹6.4 lakh crore, and gross advances surpassed ₹3 lakh crore. The Cost-to-Income ratio improved to 52.08%, and return metrics like RoA and RoE showed substantial year-on-year expansion.

The Board of Directors of The Federal Bank Limited has approved the Consolidated and Standalone Unaudited Financial Results for the quarter and half year ended September 30, 2026. The results were reviewed and recommended by the Audit Committee. The Board meeting, which resumed at 12:15 pm on October 16, 2026, approved the results at 01:00 p.m. (IST). The financial results and the limited review report from the joint statutory auditors are enclosed. The information is also available on the bank's website.

Federal Bank's consolidated net profit (basis: consolidated, primary) rose 53.4% YoY to ₹1,564 Cr (₹1,499 Cr after minority interest and share of associate profit, EPS ₹6.07 vs ₹4.04) on revenue (interest earned) of ₹8,383 Cr, up 16.2% YoY and 6.6% QoQ. Standalone PAT grew a slower 45.1% YoY to ₹1,386 Cr (EPS ₹5.61) — an 8-point gap versus the consolidated print, driven by faster growth at subsidiaries Fedbank Financial Services and Federal Operations and Services plus a ₹4.15 Cr associate contribution from Ageas Federal Life Insurance. This print clears the pre-result preview's expected net-profit band of ₹1,100–1,250 Cr by a wide margin, a clean beat on the Street's on-plan case (24 of 34 analysts rated Buy/Strong Buy pre-result). The beat was margin-led: consolidated operating profit grew faster than interest income, lifting OPM to 29.52% from 24.53% a year ago and 26.64% last quarter, while net profit margin (PAT/total income) expanded to 15.79% from 12.25% YoY and 14.51% QoQ — both standalone and consolidated books show the same expansion pattern (standalone OPM 24.16% vs 21.01% YoY, NPM 15.05% vs 12.21% YoY). This directionally confirms management's prior-concall guidance of NIM expansion through multiple levers and a mix shift to higher-yielding assets, though the exact NIM percentage and the 50-60bps credit-cost guidance are not disclosed in this results format and so cannot be independently verified from the filing; management gave no quantitative FY27 revenue/PAT target to score against. Asset quality improved alongside: standalone gross NPA fell to 1.32% from 1.83% YoY and net NPA to 0.17% from 0.48%, while advances grew 22.7% YoY to ₹3,12,823 Cr (consolidated), addressing the credit-growth and asset-quality watch items flagged pre-result. Employee costs rose sharply (+12.5% QoQ consolidated) partly from the ESOP fair-value accounting switch noted above, a one-off drag embedded in opex rather than broken out as exceptional — it had no material effect on the overall margin story. No standalone management press release/commentary was available in the context to cross-check against the print. The quarter's board also approved a new Executive Director (Virat Sunil Diwanji, appointed Sep 28) and a new Independent Director (Rajesh Varrier, appointed alongside results on Oct 16), completing the leadership transition flagged going into results, and the bank separately clarified there was no material development on Jana SFB deal rumours. Going into Q3, the filing itself leaves the NIM figure, credit-cost bps, and CASA ratio — the three items the pre-result Street read was watching — unconfirmed by hard numbers; OPM/NPM expansion is strong indirect evidence but not a substitute for the disclosed ratio.

Federal Bank Ltd has announced the appointment of Mr. Rajesh Varrier (DIN: 00105765) as an Additional Director (Non-Executive Independent Director) on its Board. The appointment, approved by the Board of Directors at a meeting held on October 16, 2026, is effective for a period of three consecutive years. This appointment is based on the recommendations of the Nomination, Remuneration, Ethics and Compensation Committee and is in compliance with the Banking Regulation Act, 1949, and RBI directions. Shareholders' approval will be sought at the next general meeting. Mr. Varrier is not related to any existing directors or key managerial personnel and is not debarred from holding a director's office.

Federal Bank Ltd has announced the launch of its new product, the Verto Resident Savings Account. The launch took place on October 7, 2026, and the product is designed for the domestic market. This initiative is part of the bank's ongoing efforts to expand its product offerings and cater to the needs of resident customers in India.

Federal Bank Ltd has announced that its Board of Directors will convene on October 16, 2026. The primary agenda item is to consider and approve the Un-audited Standalone and Consolidated Financial Results for the second quarter and half-year ended September 30, 2026. Additionally, the bank has informed about the closure of the trading window for its securities from October 01, 2026, to October 18, 2026, inclusive. This closure applies to all Designated Persons, Key Managerial Personnel (KMPs), Designated Employees, and their immediate relatives, as well as Connected Persons, in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, and the bank's internal code of conduct. The notice will be available on the bank's website.

Federal Bank Ltd announced the retirement of Mr. Ramanand Mundkur as an Independent Director, effective September 30, 2026, upon completion of his tenure. Mr. Mundkur's term as Independent Director was from October 01, 2021, to September 30, 2026. The bank has provided the necessary disclosures as per SEBI regulations. This change is a routine completion of tenure and does not indicate any adverse circumstances.

Federal Bank Ltd has announced the closure of its trading window for dealing in the bank's securities. This closure is effective from October 01, 2026, and will remain in effect until 48 hours after the declaration of the Unaudited Standalone and Consolidated Financial Results for the quarter and half-year ending September 30, 2026. The closure applies to all Designated Persons, including Directors, Key Managerial Personnel, Designated Employees, their immediate relatives, and other connected persons. The date of the board meeting to approve these financial results will be communicated separately.

Federal Bank Ltd announced the appointment of Mr. Virat Sunil Diwanji as Executive Director on its Board, following approval from the Reserve Bank of India (RBI). The appointment is for a period of three years, effective from October 12, 2026. Mr. Diwanji, currently the National Head of Consumer Banking at Federal Bank, brings over 30 years of experience from the Kotak Mahindra Group. His appointment is subject to shareholder approval within three months. He is not disqualified from holding the director position and has no relation to existing directors.