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17-Jan-2026

Federal Bank

Healthy all-round performance


'Federal Bank has reported 9% growth in net profit at Rs 1041.21 crore for the quarter ended December 2025 (Q3FY2026). Net Interest Income (NII) increased 9% while the core fee income of the bank also jumped 21% to highest level in Q3FY2026. The Net Interest Margin (NIM) of the bank moved up to 3.18% in Q3FY2026 compared to 3.11% in the corresponding quarter of previous year.

On business front, the business growth improved to 8% at end December 2025 from 6% at end September 2025, as the loan book growth improved to 5%. Further, the CASA ratio of the bank has increased to 32.1% at end December 2025 from 30.2% at end December 2024.

NII growth improves as NIM rises: Interest income increased 1% to Rs 6867.50 crore, while interest expenses fell 4% to Rs 4214.77 crore in Q3FY2026. NII improved 9% to Rs 2652.73 crore in Q3FY2026.

Margins improve: The bank has shown 44 bps YoY decline in cost of deposits to 5.48%, while yield on advances declined 65 bps...



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