Federal Bank announced Q2FY26 results Q2FY26 Financial Highlights: Record NII at Rs 2,495 crore, reflecting stable margins. Highest-ever fee income at Rs 886 crore, underscoring continued momentum in non-interest revenue streams. CASA ratio improved to 31%, up 94 bps YoY; CASA deposits grew 10.7% YoY to Rs 89,591 crore. Operating profit stood at Rs 1,644.2 crore, up 5.7% QoQ. Net profit rose 10.9% QoQ to Rs 955.3 crore, driven by robust operating income and efficient cost management. ROA at 1.1% and ROE at 11%, maintaining healthy profitability metrics. Net Interest Margin improved 12 bps QoQ to 3.1%. Total deposits increased 7.4% YoY, while net advances grew 6.2% YoY, reflecting balanced franchise growth. Asset quality remained among the best in the decade with GNPA at 1.8% and NNPA at 0.5%. CRAR stood strong at 15.7%, ensuring a comfortable capital position. Provision Coverage Ratio remained robust at 73.5%. Total Business of the Bank reached Rs 533,576.6 crore registering a growth of 6.8% YoY. On the Asset side, Net advances increased from Rs 2,30,312 crore as on September 30, 2024 to Rs 2,44,657 on September 30, 2025, a growth of over 6.2% YoY. The Bank registered Operating Profit of Rs 1,644.2 crore and Net Profit of Rs 955.3 crore for the quarter ended September 30, 2025. KVS Manian, Managing Director & CEO said: “Having spent over a year in this role, I have a deep sense of conviction about where the Bank stands today and the direction we’re headed. Over the past few quarters, we’ve undertaken several strategic reorientations to strengthen our foundation and build for the future — and the results are beginning to show. Our CASA franchise continues to demonstrate sustained and meaningful growth, reflecting the trust of our customers and the consistency of our team’s execution. We’re also broadening our asset mix thoughtfully, increasing the share of our mid-yield portfolio in a measured and disciplined way. At the same time, our fee income has seen strong, double-digit sequential growth, underscoring the breadth and resilience of our earnings. Our asset quality remains solid, supported by prudent risk management and a balanced approach to growth. As we look ahead, we’re shaping an organisation that’s agile in its thinking, disciplined in its actions, and firmly anchored in the stability and values that define Federal Bank." Result PDF