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Informist, Friday, Jul. 17, 2026

 

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--Federal Bank Apr-Jun net profit INR 11.77 bln
--Analysts saw Federal Bank Apr-Jun net profit INR 11.63 bln
--Federal Bank Apr-Jun total income INR 82.87 bln
--Federal Bank Apr-Jun net profit INR 11.77 bln vs INR 8.62 bln year ago
--Federal Bank Apr-Jun provisions INR 3.18 bln vs INR 4.00 bln year ago
--Federal Bank Apr-Jun total income INR 82.87 bln vs INR 78.00 bln year ago
--Federal Bank net NPA ratio 0.18% on Jun 30 vs 0.20% qtr ago
--Federal Bank gross NPA ratio 1.52% on Jun 30 vs 1.62% qtr ago
--Federal Bank Basel III capital adequacy ratio 16.97% on Jun 30
--Federal Bank Apr-Jun NIM 3.33% vs 3.74% qtr ago, 2.94% year ago
--Federal Bank Q1 net interest income INR 29.46 bln vs INR 23.37 bln yr ago
--Federal Bank net advances INR 2.77 tln on Jun 30, up 15% YoY
--Federal Bank total deposits INR 3.20 tln on Jun 30, up 11% YoY
--Federal Bk Apr-Jun cost of deposits 5.21% vs 5.43% qtr ago, 5.78% yr ago
--Federal Bank Q1 fresh slippages INR 4.09 bln vs INR 6.58 bln year ago
--Federal Bank shares at INR 342, up INR 15.40 or 4.7% 
--Federal Bk Apr-Jun yield on advances 8.73% vs 8.77% qtr ago, 9.17% yr ago
--Federal Bank shares up over 5% vs 2?rlier
--Federal Bank CASA ratio 32.23% on Jun 30 vs 32.94% qtr ago

 

By Shweta

 

NEW DELHI – Federal Bank Friday reported a 12-quarter high jump in its net profit for the June quarter on the back of a healthy rise in its net interest income and a fall in its provisions. However, the bottom line declined sequentially due to weaker operations compared with the seasonally-strong March quarter. The Kerala-based bank's bottom line was also broadly in line with the Street view.

 

The bank's net profit was INR 11.77 billion in the June quarter, up 37% on year but down 7% on quarter. Analysts had expected the bank's bottom line at INR 11.63 billion. The bank reported its June quarter results during market hours. Following the results, its shares declined 2%, but have recovered thereafter and at 1401 IST, they were trading at INR 335 on the National Stock Exchange.

 

The private-sector bank's net interest income was up 26% on year at INR 29.46 billion in the quarter under review. Sequentially, the net interest income rose 8%. According to the bank's investor presentation, the net interest income and the net profit during the June quarter were at a record-high, barring last quarter when the lender had a one-time interest income worth INR 4.57 billion from an income tax refund. The bank's total income for the June quarter was up over 6% on year at INR 82.87 billion. Sequentially, however, this was lower by over 3%. 

 

The bank's provisions and contingencies during the June quarter fell 21% on year to INR 3.18 billion. This was the first fall in provisions in seven quarters and the sharpest in eight, according to data available with Informist.

 

The fall in provisions coincided with an improvement in the bank's asset quality to its decadal-best. The net non-performing asset ratio fell to 0.18%, down 19 basis points from the March quarter and 30 bps from the year-ago quarter. The gross NPA ratio also declined 10 bps sequentially and 39 bps on year to 1.52%. The provision coverage ratio was 87.37% at the end of June, up from 87.07% at the end of March and 74.41% at the end of June 2025.

 

The bank's business performance was steady during the reporting quarter, with its net advances and total deposits rising 15% each on year to INR 2.77 trillion and INR 2.71 trillion as of Jun. 30, respectively. The lender's net interest margin fell to 3.33% in the June quarter from 3.74% a quarter ago but rose from 2.94% in the June quarter a year ago. 

 

Total expenses grew around 2% on year and sequentially to INR 63.89 billion in Apr-Jun. The bank's total expenses rose mainly due to higher operating expenses, which rose nearly 11% on year and 3% sequentially to INR 20.97 billion. The lender's interest expense fell, limiting the rise in expenses. The lender paid INR 4.03 billion as tax in Apr-Jun, which was up nearly 37% on year and 45% on quarter.

 

The domestic current account savings account deposits ratio was 32.23% at the end of June, up 188 bps on year but down 71 bps sequentially. The cost of deposits was 5.21%, down 22 bps from the March quarter and 57 bps from a year ago. The lender's cost of funds fell to 5.25% in the June quarter from 5.46% a quarter ago and 5.85% a year ago. Federal Bank's yield on advances slipped to 8.73% in Apr-Jun from 8.77% a quarter ago and 9.17% a year ago.

The capital adequacy ratio based on Basel-III norms was 16.97% at the end of June, lower than 17.25% at the end of March but up from 16.03% at the end of June 2025. 

 

The bank reported fresh slippages of INR 4.09 billion in the June quarter, lower than INR 6.58 billion in the year-ago quarter. Within this, retail slippages held the highest share at INR 1.96 billion, against INR 2.73 billion a year ago. Friday, shares of the bank ended at INR 349 on the NSE, up 6.86% from the Thursday's close.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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