Home / Business and Economy / Federal Bank Achieves Record Profit, Advances Exceed 3 Trillion
Federal Bank Achieves Record Profit, Advances Exceed 3 Trillion
16 Oct
Summary
- Net profit soared 45.1% to a record Rs 1,386 crore in Q2 FY27.
- Net interest income rose 26.4% to Rs 3,153.4 crore.
- Gross advances surpassed Rs 3 trillion, reaching Rs 3.02 trillion.
Federal Bank has reported a record-breaking net profit of Rs 1,386 crore for the July-September quarter of FY27, representing a substantial 45.1% year-on-year growth. This impressive financial performance was driven by a strong increase in net interest income (NII), which grew by 26.4% to Rs 3,153.4 crore.
The bank's net interest margin (NIM) also expanded by 26 basis points to 3.32%. Fee income contributed significantly, rising 31.9% to Rs 1,167.7 crore. This all-round growth reflects Federal Bank's expanding operational capacity and market presence.
Federal Bank's asset quality has shown marked improvement, with the gross non-performing asset (GNPA) ratio dropping to 1.32% as of September 30, 2026. The net NPA ratio also decreased to 0.17%. These figures represent the lowest levels seen in a decade, highlighting the bank's effective risk management.
Total deposits increased by 18.6% to Rs 3.43 trillion, with low-cost CASA deposits growing 22.6% to Rs 1.1 trillion. Crucially, gross advances crossed the Rs 3 trillion mark, reaching Rs 3.02 trillion, buoyed by strong performance in gold loans, loans against property, and credit card advances.
