Federal Bank Q3 impact: Jhunjhunwala, Zerodha gain Rs 200 crore as stock spurts 11%

Federal Bank Ltd public shareholders Rekha Jhunjhunwala and Zerodha Broking made combined notional gains of over Rs 200 crore as the stock soared nearly 11 per cent in Friday's trade following better-than-expected December quarter results by the private lender.

Rekha Jhunjhunwala held 5,90,30,060 shares or 2.42 per cent stake in Federal Bank at the end of December quarter, whose value jumped to Rs 1,620.74 crore in Wednesday's trade from  Rs 1,471.23 crore in the same quarter last year, up 149.50 crore. Zerodha Broking, on the other hand, owned 1.02 per cent stake at the end of December 2025, which was worth Rs 683.12 crore today at intraday levels, up Rs 63 crore. 
   
For the quarter, Federal Bank said its Net interest income (NII), operating profit, and fee income each reached all-time highs, reflecting strong core earnings momentum. Its net profit for the quarter came in at Rs 1,041.21 crore, up 8.98 per cent YoY. NII rose 9.11 per cent YoY to Rs 2,652.73 crore. Net interest margin (NIM) for the quarter came in at 3.18 per cent. Fee income at Rs 896.47 crore was up 18.57 per cent YoY. Asset quality imrpoved with gross non-performing assets coming in at 1.72 per cent, down 11 basis points QoQ or 23 basis points YoY.

Managing Director & CEO KVS Manian said: “Our Q3 performance reflects the continued strengthening of the Bank’s underlying fundamentals. The improvement in margins, reduction in funding costs, and sustained stability in asset quality are the direct outcome of the balance-sheet discipline and execution focus we have maintained over the past few quarters. We are seeing increasing benefits from a stronger liability franchise and a calibrated shift in our asset mix toward segments that deliver superior risk-adjusted returns."

"At the same time, cost discipline and prudent risk management remain central to how we operate. While competitive intensity remains high, our emphasis is on consistency and quality of earnings rather than headline growth. We believe this approach positions the Bank well to deliver sustainable performance across market cycles," he said.