Federal Bank Q2 FY2026-27 Results: Profit Climbs To ₹1,386 Crore, Net NPA Falls To 0.17% And Fee Income Reaches A Record High
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Federal Bank’s Q2 FY27 net profit surged 45.1% to ₹1,386.09 crore. Net interest income also rose 26.38%. At the same time gross and net non-performing assets (NPAs) fell to their lowest levels in a decade.
Federal Bank reported a record quarterly profit for Q2 FY27. The performance is supported by growth in core income and improved asset quality. Its total business crossed ₹6.4 lakh crore. Gross advances moved past ₹3 lakh crore. The bank’s capital adequacy ratio stood at 16.84%, while the Tier I capital ratio was 15.76% as of 30 September 2026.
Federal Bank shares rose 0.90% to close at ₹338 on the National Stock Exchange (NSE) on the reported date. The stock opened at ₹337, compared with the previous close of ₹335. It touched an intraday high of ₹344.80 and a low of ₹328.
Federal Bank Q2 Results: Financial Highlights
Net interest income (NII) rose 26.38% year-on-year (YoY) to ₹3,153.40 crore, ahead of advances growth of 21.66%. Operating profit increased 35.35% to ₹2,225.37 crore. Earnings per share (EPS) climbed 44.34% to ₹22.26.
Other income reached a record ₹1,490.44 crore, up 37.73%, while fee income rose 31.86% to ₹1,167.71 crore. Net interest margin (NIM) expanded 26 basis points (bps) YoY to 3.32%. The cost of funds fell 40 bps, and the cost of deposits declined 39 bps to 5.18%.
Federal Bank Asset Quality Improves
Gross non-performing assets (NPA) fell to 1.32% and net NPA to 0.17%, improving by 51 and 31 bps YoY, respectively. Fresh slippages declined 27.48%, while the slippage ratio improved to 0.59% from 0.94% a year earlier. The restructured book stood at ₹1,389.55 crore, or 0.46% of gross advances.
The provision coverage ratio, excluding technical write-offs (TWO), rose to 86.78%. Credit cost declined 19 bps to 0.31%.
Federal Bank Deposits And Advances Continue To Grow
Total deposits rose 18.61% YoY to ₹3,42,693.56 crore, while gross advances grew 21.66% to ₹3,01,687.80 crore. Current account savings account (CASA) balances increased 22.56% to ₹1,09,803.15 crore, taking the CASA ratio to 32.04%.
The bank added 12 branches during the quarter, bringing its network to 1,662 banking outlets.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
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