Federal Bank Reports ₹1,041 Crore Net Profit in Q3 FY26, up 9% QoQ
Filing Summary
Federal Bank announced its unaudited financial results for Q3 FY26, reporting a net profit of ₹1,041 crore, marking a 9% increase quarter-on-quarter. The bank’s total business reached ₹5,53,364 crore, with advances and deposits growing by 4.46% and 3.07% QoQ, respectively. The Net Interest Income rose to ₹2,653 crore, while the Net Interest Margin expanded to 3.18%. Asset quality improved, with Gross NPA at 1.72% and Net NPA at 0.42%. Federal Bank also increased its stake in Ageas Federal Life Insurance Company to 30%.
Federal Bank has released its unaudited financial results for the quarter ending December 31, 2025. The bank reported a net profit of ₹1,041 crore, reflecting a 9% increase from the previous quarter. The results were supported by stronger core income and operating leverage. The bank’s total business stood at ₹5,53,364 crore, registering a 3.71% growth quarter-on-quarter and an 11.40% increase year-on-year.
The bank’s Net Interest Income (NII) increased to ₹2,653 crore, showing a 6.31% rise from the previous quarter and a 9.11% increase year-on-year. The Net Interest Margin (NIM) expanded by 12 basis points to 3.18%, driven by an improved liability mix and asset repricing. The bank’s fee income grew to ₹896 crore, marking an 18.57% increase year-on-year. The cost-to-income ratio improved to 53.92%, indicating continued operating leverage.
Federal Bank’s asset quality showed improvement, with Gross NPA at 1.72% and Net NPA at 0.42%. The Provision Coverage Ratio, excluding technical write-offs, improved to 75.14%. The bank’s advances rose to ₹2,55,569 crore, a 4.46% increase quarter-on-quarter, driven by growth in Commercial Banking and Corporate & Institutional Banking. Deposits increased to ₹2,97,796 crore, growing 3.07% quarter-on-quarter. The CASA ratio improved to 32.07%, with CASA balances growing 18.86% year-on-year.
During the quarter, Federal Bank increased its stake in Ageas Federal Life Insurance Company from 26% to 30% by acquiring 3.2 crore shares at ₹30.45 per share. This transaction was completed in November 2025 and received all necessary approvals from the Reserve Bank of India and the Insurance Regulatory and Development Authority of India.
Federal Bank also unveiled a refreshed brand identity, “The Fortuna Wave,” aimed at enhancing its connection with a digitally driven customer base. Additionally, the bank welcomed a strategic minority investment from Blackstone, which has been approved by the Board of Directors, shareholders, and the Competition Commission of India.
Federal Bank is focused on building a stable, margin-led, and resilient franchise. The bank continues to emphasize disciplined cost management and risk discipline, aiming to deliver sustainable performance across market cycles. The bank’s strategic moves, including increasing its stake in the insurance sector and refreshing its brand identity, align with its long-term growth objectives.