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Federal Bank Surges: Q1 Profit Soars 36%!
17 Jul
Summary
- Consolidated net profit jumped 36% year-on-year to Rs 1,176.93 crore.
- Net non-performing assets fell to a decade-low of 0.18%.
- Core business earnings drove profit, not market gains, CEO noted.
Federal Bank reported a substantial 36% year-on-year surge in its consolidated net profit for the first quarter of fiscal year 2026-27, amounting to Rs 1,176.93 crore. This impressive financial performance was accompanied by a notable expansion in net interest margin (NIM) by 39 basis points to 3.33%.
The bank also showcased a significant improvement in its asset quality. Net non-performing assets (NPA) dropped to a historic low of 0.18%, representing a 56.29% annual decrease. Gross NPA also improved, reaching 1.52%, with fresh slippages declining by 37.79%.
KVS Manian, Managing Director & CEO, emphasized that the nearly 37% profit growth stemmed from the bank's core business, even during a challenging period for treasury operations. He further noted that net interest income increased by 26% against an advances growth of 15%, reflecting successful NIM expansion strategies.
