Federal Bank Q3 Profit Hits ₹1,041 Crore

Federal Bank reported a robust 9% year-on-year increase in net profit for the third quarter of fiscal year 2026, amounting to ₹1,041 crore. This performance was driven by consistent growth in its core income streams and a strengthening asset quality.

The lender's net interest income (NII) grew by 9% year-on-year to ₹2,653 crore, with net interest margin (NIM) improving to 3.18%. Advances expanded by 11% year-on-year to ₹2.55 lakh crore by the end of December, with retail loans comprising 55% of customer assets. Deposits also saw a 12% year-on-year increase, reaching ₹2.97 lakh crore.

Asset quality showed positive trends, with fresh slippages declining to ₹435 crore and the gross and net non-performing asset (GNPA, NNPA) ratios improving to 1.72% and 0.42%, respectively. The bank is awaiting final guidelines for expected credit loss (ECL) provisions from the central bank and anticipates a potential 50 basis points boost to its capital adequacy ratio from the anticipated capital infusion by Blackstone.