Federal Bank Q2 Profit Rises 45.10% to Record ₹1,386 Cr

Mumbai, 2026: Federal Bank today reported net profit of ₹1,386.09 crore for the quarter ended 30 September 2026 (Q2 FY27), up 45.10% over the corresponding quarter of the previous year. This is the highest quarterly profit in the Bank’s history. The core franchise drove the earnings growth: net interest income grew 26.38%, fee income grew 31.86%, and gross and net NPA both reached decadal lows.

Key Highlights – Q2 FY27

Profitability: Net profit was ₹1,386.09 crore, the highest ever, up 45.10% YoY and 17.77% QoQ. Earnings per share rose 44.34% to ₹22.26. Operating profit grew 35.35% to ₹2,225.37 crore.

Core Earnings Engine: Net Interest Income grew 26.38% to ₹3,153.40 crore, ahead of advances growth of 21.66%.

Margin Expansion: NIM expanded 26 bps YoY to 3.32%. Cost of Funds fell 40 bps YoY. Cost of Deposits declined 39 bps YoY to 5.18%.

Record Other Income: Other income reached its highest-ever level of ₹1,490.44 crore, up 37.73% YoY. Fee income grew 31.86% to ₹1,167.71 crore. Fee income to average earning assets is at an all-time high of 1.11%.

Asset Quality at Decadal Best:

Gross NPA improved to 1.32% and Net NPA to 0.17%, both decadal lows. These are improvements of 51 bps and 31 bps YoY respectively.

Fortified Coverage: The Provision Coverage Ratio (excluding TWO) strengthened to 86.78%, up 1,333 bps YoY. Coverage including technical write-offs stands at 94.49%. Credit cost declined 19 bps YoY to 0.31%.

Balance Sheet Scale: Total business franchise now stands at over ₹6.4 lakh crore up 20.12% YoY. Total deposits stood at ₹3,42,693.56 crore, up 18.61% YoY. Gross advances crossed ₹3 lakh crore to reach ₹3,01,687.80 crore, up 21.66% YoY.

MD & CEO’s Comment

Commenting on the performance, Mr. 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 ₹6.4 lakh crore and advances crossing ₹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.” “