Federal Bank's Q3 FY 2025-26 Quarterly Results
- 4d ago
Result Summary
- Federal Bank Ltd reported a 2.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 3.7%.
- Its expenses for the quarter were up by 1.1% QoQ and 1.4% YoY.
- The net profit increased 10.0% QoQ and increased 18.3% YoY.
- The earnings per share (EPS) of Federal Bank Ltd stood at 4.4 during Q3 FY 2025-26.
Financial Statments for Q3 FY 2025-26
Total Income | 8503.16 | 8321.46 | 8196.02 | 2.2% | 3.7% |
Total Expenses | 6621.21 | 6551.47 | 6531.81 | 1.1% | 1.4% |
Provisions & contingencies | 374.47 | 397.44 | 387.36 | -5.8% | -3.3% |
Profit Before Tax | 1507.48 | 1372.55 | 1276.85 | 9.8% | 18.1% |
Tax | 383.55 | 353.12 | 328.15 | 8.6% | 16.9% |
Profit After Tax | 1125.39 | 1022.64 | 951.31 | 10.0% | 18.3% |
Earnings Per Share | 4.40 | 4.00 | 3.81 | 10.0% | 15.5% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Federal Bank Ltd is a prominent player in the Indian banking sector, known for offering a wide range of financial services. The bank primarily focuses on retail and corporate banking, including loans, deposits, and investment services. As a significant entity in the banking industry, Federal Bank Ltd has established a robust presence in both urban and rural markets, catering to diverse customer needs. Recently, the bank has been actively working on expanding its digital banking services to enhance customer experience and operational efficiency. However, specific details on any recent major developments within the company have not been provided in the available data.
Revenue
During the third quarter of fiscal year 2026 (Q3FY26), Federal Bank Ltd reported a total income of ₹8503.16 crores, which reflects a 2.2% increase from the previous quarter (Q2FY26) and a 3.7% rise compared to the same quarter of the previous fiscal year (Q3FY25). This consistent increase in total income over both the quarterly and yearly periods indicates a positive performance in revenue generation. The data provided does not include specifics regarding the sources of revenue, such as interest income or fee-based income, which are typically significant components of a bank's revenue structure. Nonetheless, the overall growth trend in total income is a key highlight for this reporting period.
Profitability
Federal Bank Ltd's profitability metrics for Q3FY26 demonstrate a solid upward trend. The bank's profit before tax (PBT) for the quarter was ₹1507.48 crores, marking a 9.8% increase from Q2FY26 and an 18.1% increase from Q3FY25. This growth in PBT is accompanied by an increase in profit after tax (PAT), which reached ₹1125.39 crores, showing a 10.0% rise quarter-over-quarter and an 18.3% rise year-over-year. The tax expenses for the quarter were ₹383.55 crores, up by 8.6% from the previous quarter and 16.9% from the same quarter last year. The consistent improvement in profitability highlights the bank's effective cost management and revenue optimization strategies, although specific reasons for these improvements are not detailed in the available data.
Operating Metrics
Analyzing the operating metrics, Federal Bank Ltd's total expenses in Q3FY26 stood at ₹6621.21 crores, reflecting a modest 1.1% increase from Q2FY26 and a 1.4% rise from Q3FY25. The provisions and contingencies decreased by 5.8% quarter-over-quarter and 3.3% year-over-year, amounting to ₹374.47 crores. This reduction in provisions could indicate improved asset quality or effective risk management practices, though specifics are not provided. Additionally, the earnings per share (EPS) for Q3FY26 were ₹4.40, an increase of 10.0% from the previous quarter and 15.5% from the same period last year. These operating metrics, particularly the decrease in provisions and the increase in EPS, suggest a stable operational performance for the bank during the quarter.