Federal Bank Q3 results: Net profit rises 9% to Rs 1,041 crore; stock jumps 9%
Federal Bank total deposits grew 12 per cent year-on-year to Rs 297,796 crore, while advances rose 11 per cent to Rs 255,569 crore.
- Jan 16, 2026,
- Updated Jan 16, 2026 1:18 PM IST
Federal Bank Ltd shares witnessed a spirited rally in Friday’s trade following its earnings announcement. The stock jumped over 9 per cent to day’s high of Rs 269.55, against its previous close of Rs 246.90.
The private lender posted a net profit of Rs 1,041 crore for the quarter ended December 31, 2025, registering a healthy growth of 9 per cent compared to Rs 955 crore clocked in the corresponding period of the previous year.
The bottom line was bolstered, with Net Interest Income (NII) climbing 9 per cent year-on-year (YoY) to Rs 2,653 crore, up from Rs 2,431 crore in the year-ago quarter.
Gross Non-Performing Assets (NPAs) stood at Rs 4,447 crore, visibly lower than the Rs 4,553 crore reported a year earlier. Consequently, the Gross NPA ratio improve to 1.72 per cent from 1.95 per cent in the same quarter last year.
Similarly, the Net NPA ratio tightened to 0.42 per cent, with net bad loans standing at Rs 1,068 crore, an improvement from 0.49 per cent (Rs 1,131 crore) recorded last year.
Operating profit for the quarter surged to Rs 1,729 crore, up 10 per cent from Rs 1,569 crore in the previous year.
Furthermore, the Net Interest Margin (NIM) expanded to 3.18 per cent, aided by a strategic improvement in the liability mix and asset repricing, while the cost-to-income ratio improved to 53.92 per cent.
On the business front, Federal Bank total deposits grew 12 per cent year-on-year to Rs 297,796 crore, while advances rose 11 per cent to Rs 255,569 crore, led by strong traction in commercial and corporate banking segments.
The bank also saw its CASA (Current Account Savings Account) ratio improve to 32.07 per cent, up 191 basis points from last year, signalling a healthy inflow of low-cost deposits.
Federal Bank Ltd shares witnessed a spirited rally in Friday’s trade following its earnings announcement. The stock jumped over 9 per cent to day’s high of Rs 269.55, against its previous close of Rs 246.90.
The private lender posted a net profit of Rs 1,041 crore for the quarter ended December 31, 2025, registering a healthy growth of 9 per cent compared to Rs 955 crore clocked in the corresponding period of the previous year.
The bottom line was bolstered, with Net Interest Income (NII) climbing 9 per cent year-on-year (YoY) to Rs 2,653 crore, up from Rs 2,431 crore in the year-ago quarter.
Gross Non-Performing Assets (NPAs) stood at Rs 4,447 crore, visibly lower than the Rs 4,553 crore reported a year earlier. Consequently, the Gross NPA ratio improve to 1.72 per cent from 1.95 per cent in the same quarter last year.
Similarly, the Net NPA ratio tightened to 0.42 per cent, with net bad loans standing at Rs 1,068 crore, an improvement from 0.49 per cent (Rs 1,131 crore) recorded last year.
Operating profit for the quarter surged to Rs 1,729 crore, up 10 per cent from Rs 1,569 crore in the previous year.
Furthermore, the Net Interest Margin (NIM) expanded to 3.18 per cent, aided by a strategic improvement in the liability mix and asset repricing, while the cost-to-income ratio improved to 53.92 per cent.
On the business front, Federal Bank total deposits grew 12 per cent year-on-year to Rs 297,796 crore, while advances rose 11 per cent to Rs 255,569 crore, led by strong traction in commercial and corporate banking segments.
The bank also saw its CASA (Current Account Savings Account) ratio improve to 32.07 per cent, up 191 basis points from last year, signalling a healthy inflow of low-cost deposits.