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Informist, Friday, Jan. 16, 2026

 

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--Federal Bank Oct-Dec net profit INR 10.41 bln
--Analysts saw Federal Bank Oct-Dec net profit at INR 10.07 bln
--Federal Bank Oct-Dec net profit INR 10.41 bln vs INR 9.55 bln year ago
--Federal Bank Oct-Dec total income INR 79.68 bln vs INR 77.25 bln year ago
--Federal Bank Oct-Dec provisions INR 3.32 bln vs INR 2.92 bln year ago
--Federal Bank net NPA ratio 0.42% as on Dec 31 vs 0.48% qtr ago
--Federal Bank gross NPA ratio 1.72% as on Dec 31 vs 1.83% qtr ago
--Federal Bank Basel III capital adequacy ratio 15.20% as on Dec 31
--Federal Bank Apr-Dec net profit INR 28.58 bln vs INR 30.22 bln year ago
--Federal Bank Apr-Dec total income INR 235.92 bln vs INR 225.12 bln yr ago
--Federal Bank Oct-Dec net interest income INR 26.53 bln, up 9% on year
--Federal Bank Oct-Dec NIM 3.18% vs 3.06% qtr ago, 3.11% year ago
--Federal Bank total deposits INR 2.98 tln as on Dec 31, up 12% on year
--Federal Bank advances INR 2.66 tln as on Dec 31, up 9% on year
--Federal Bank Oct-Dec annualised cost of deposits 5.48% vs 5.57% qtr ago
--Federal Bank Oct-Dec annualised yield on advances 8.74% vs 8.86% qtr ago
--Federal Bank Oct-Dec fresh slippages INR 4.35 bln vs INR 4.86 bln year ago
--Federal Bank MD: Focus on quality of earnings rather than headline growth

 

By Divya Moolayattil

 

MUMBAI – Kerala-based Federal Bank Ltd.'s net profit rose nearly 9%, both on year and on quarter, to INR 10.41 billion for the December quarter. The rise in the bottom line was over 3% higher than analysts' estimates due to strong growth in other income. The average of estimates from 12 brokerage firms had pegged the lender's net profit for the quarter at INR 10.07 billion.

 

The bank's net interest income for the reporting quarter increased 9% on year and 6% on quarter to INR 26.53 billion. Other income for the December quarter climbed 20% on year to INR 11 billion, which helped boost profitability. For the trailing quarter, the bank's other income was INR 10.82 billion.

 

The lender's net interest income for the quarter was its highest ever. Its net interest margin rose to 3.18% from 3.06% in the trailing quarter and 3.11% a year ago. Within other income, the bank recorded its highest fee income of INR 8.96 billion, a rise of over 18% on year.

 

The lender’s operating profit for the quarter was also its highest ever at INR 17.29 billion. The lender’s total income for the December quarter was INR 79.68 billion, a rise of 3% on year. Friday, shares of Federal Bank closed 9.5% higher at INR 270.25 on the National Stock Exchange. The bank detailed its earnings during market hours.

 

In the December quarter, the bank's total deposits grew 12% on year to INR 2.98 trillion and total advances grew 9% on year to INR 2.66 trillion. The current account savings accounts ratio improved 191 basis points to 32.07% from 30.16% a year ago, scaling a new peak, according to the bank's investor presentation.

 

The bank's cost of deposits was 5.48%, down from 5.57% a quarter ago and 5.92% a year ago. The yield on advances fell to 8.74% from 9.39% a year ago and 8.86% a quarter ago. The lender’s capital adequacy ratio as of Dec. 31 under Basel III norms rose to 15.20% from 15.16% a year ago. Sequentially, the capital adequacy ratio under Basel III was 51 bps lower.

 

Provisions and contingencies for the quarter were at INR 3.32 billion, a rise of 13.7% on year but a fall of over 8.5% on quarter. The bank's asset quality was at a decadal high, according to the presentation. The gross non-performing asset ratio was 1.72% as of Dec. 31, against 1.95% a year ago and 1.83% a quarter ago. The net non-performing asset ratio fell to 0.42% from 0.49% a year ago and 0.48% as of Sept. 30. The bank's slippages were at INR 4.35 billion as of Dec. 31 from INR 5.79 billion as of Sept. 30 and INR 4.86 billion a year ago.

 

"While competitive intensity remains high, our emphasis is on consistency and quality of earnings rather than headline growth," Managing Director and Chief Executive Officer K.V.S. Manian was quoted as saying in a press release. "We believe this approach positions the bank well to deliver sustainable performance across market cycles."

 

The bank's net profit for the nine months ended Dec. 31 was INR 28.6 billion, down 5% on year. Its total income for the period was INR 235.91 billion, against INR 225.12 billion in the year-ago period.  End

 

Edited by Tanima Banerjee and Rajeev Pai

 

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