Federal Bank Q2 earnings: Net profit at record high, asset quality improves
The lender reported a 45.10% rise in Q2 net profit to a record high of Rs 1,386.09 crore.
- Oct 16, 2026,
- Updated Oct 16, 2026 4:55 PM IST
Private sector lender Federal Bank Ltd on Friday reported its Q2 earnings. The lender reported a 45.10% rise in Q2 net profit to a record high of Rs 1,386.09 crore. Asset quality came at a decadal best with gross NPAs improving to 1.32% and Net NPAs to 0.17%, both decadal lows. These are improvements of 51 bps and 31 bps YoY, respectively.
However, the banking stock ended on a flat note at Rs 337 today against the previous close of Rs 335. Market cap of the lender stood at Rs 83,299 crore.
Meanwhile, earnings per share rose 44.34% to Rs 22.26. Operating profit rose 35.35% to Rs 2,225.37 crore. Net interest income rose 26.38% to Rs 3,153.40 crore, ahead of advances growth of 21.66%.
NIMs expanded 26 bps YoY to 3.32%. Cost of funds fell 40 bps YoY. Cost of deposits declined 39 bps YoY to 5.18%.
KVS Manian, Managing Director & CEO, said, "This quarter marks several milestones for the Bank: our highest-ever profit, our total business franchise now stands at over Rs 6.4 lakh crore and advances crossing Rs 3 lakh crore. More importantly, the growth is coming from the core. Net interest income grew 26% and fee income 32%, and fee income relative to our earning assets is at an all-time high. Gross and net NPAs are at their lowest levels in a decade, slippages are down 27% and provision coverage stands at 87%. We are growing faster while keeping the quality of the book intact. Our chosen segments are delivering as intended, and the CASA and NR franchises continue to deepen. As the rate environment turns, we enter the second half of the year with a strong capital position, a granular balance sheet and good momentum in our core business.”
Private sector lender Federal Bank Ltd on Friday reported its Q2 earnings. The lender reported a 45.10% rise in Q2 net profit to a record high of Rs 1,386.09 crore. Asset quality came at a decadal best with gross NPAs improving to 1.32% and Net NPAs to 0.17%, both decadal lows. These are improvements of 51 bps and 31 bps YoY, respectively.
However, the banking stock ended on a flat note at Rs 337 today against the previous close of Rs 335. Market cap of the lender stood at Rs 83,299 crore.
Meanwhile, earnings per share rose 44.34% to Rs 22.26. Operating profit rose 35.35% to Rs 2,225.37 crore. Net interest income rose 26.38% to Rs 3,153.40 crore, ahead of advances growth of 21.66%.
NIMs expanded 26 bps YoY to 3.32%. Cost of funds fell 40 bps YoY. Cost of deposits declined 39 bps YoY to 5.18%.
KVS Manian, Managing Director & CEO, said, "This quarter marks several milestones for the Bank: our highest-ever profit, our total business franchise now stands at over Rs 6.4 lakh crore and advances crossing Rs 3 lakh crore. More importantly, the growth is coming from the core. Net interest income grew 26% and fee income 32%, and fee income relative to our earning assets is at an all-time high. Gross and net NPAs are at their lowest levels in a decade, slippages are down 27% and provision coverage stands at 87%. We are growing faster while keeping the quality of the book intact. Our chosen segments are delivering as intended, and the CASA and NR franchises continue to deepen. As the rate environment turns, we enter the second half of the year with a strong capital position, a granular balance sheet and good momentum in our core business.”