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Federal Bank Q2 Net Profit Soars 45 Percent As Asset Quality Improves
- •Federal Bank reported a 45 percent increase in net profit to ₹1,386 crore for the second quarter compared to ₹955 crore in the same period last year.
- •Net interest income grew by 26.4 percent to ₹3,153.4 crore, while net interest margin expanded to 3.32 percent.
- •Asset quality showed improvement as gross non-performing assets contracted to 1.32 percent and net NPA dropped to 0.17 percent sequentially.
- •Other income saw a significant jump of 37.7 percent to reach ₹1,490 crore at the end of the September quarter.
- •Net advances surged 22 percent to ₹2.98 lakh crore and total deposits increased by 19 percent to ₹3.42 lakh crore.
Key Questions Answered
Federal Bank reported a 45% increase in net profit to ₹1,386 crore for the second quarter ended October 2026, up from ₹955 crore in the previous year. Meanwhile, its net interest income (NII) grew by 26.4% to reach ₹3,153.4 crore compared to ₹2,495.2 crore during the same period last year.
The lender's asset quality showed improvement during the quarter under review, as its gross non-performing assets (NPA) contracted to 1.32% down from 1.52% in the previous quarter. Additionally, its net NPA experienced a marginal sequential decrease, dropping from 0.18% to 0.17%.
Federal Bank experienced strong growth across its balance sheet metrics, with total deposits increasing by 19% to reach ₹3.42 lakh crore compared to ₹2.88 lakh crore in the year-ago period. Net advances also saw an upward movement, climbing 22% to ₹2.98 lakh crore from ₹2.44 lakh crore.
