Federal Bank Q3 Profit: Federal Bank on January 16, 2026 reported a 9 percent year-on-year rise in net profit at Rs 1,041 crore for Q3FY26 as against a net profit of Rs 955 crore in the year-ago period, driven by healthy loan growth and stable margins. Consequently, the Kerala-based lender’s shares rose 10% to hit a record high of Rs 271.5 apiece.
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Net interest income (NII) increased 9 percent year on year to Rs 2,653 crore, compared with Rs 2,431 crore a year ago.
The bank’s net interest margin (NIM) improved to 3.18 percent in Q3 FY26 from 3.11 percent in Q3 FY25.
Operating profit for the quarter stood at Rs 1,729 crore, up 10 percent year on year, while total income rose to Rs 7,968 crore from Rs 7,725 crore in the year-ago period.
According to the investor presentation, the private lender reported its highest-ever quarterly fee income at Rs 896 crore, marking a 19 percent year on year increase from Rs 756 crore in Q3 FY25. Growth was driven by loan processing fees, service charges and insurance distribution income, the presentation added.
As a result, other income rose 20 percent year on year to Rs 1,100 crore, compared with Rs 916 crore a year earlier.
The bank’s total deposits grew 12 percent year on year to Rs 2.98 lakh crore as of December 2025, from Rs 2.66 lakh crore in Q3 FY25. the CASA ratio by 191 basis points to 32.07 percent, from 30.16 percent a year ago.
Advances increased 15 percent year on year to Rs 2.66 lakh crore, with growth across retail, business banking and corporate segments. Retail advances rose 1 percent year on year, while gold loans grew 12 percent.
Asset quality continued to strengthen, with gross NPAs declining to 1.72 percent as of the December quarter, compared with 1.95 percent in Q3 FY25. Net NPAs improved to 0.42 percent from 0.49 percent a year ago, which the presentation said, is their decadal best.
The provision coverage ratio (PCR) improved to 75.14 percent from 74.21 percent in Q3 FY25.
Credit cost for the quarter stood at 47 basis points, lower than 58 basis points in the year-ago period.
The bank’s return on assets (RoA) improved marginally to 1.15 percent from 1.14 percent a year ago, while return on equity (RoE) stood at 11.68 percent, compared with 12 percent in the corresponding quarter last year.
Federal Bank’s capital adequacy ratio (CRAR) stood at 15.20 percent at the end of Q3 FY26, compared with 15.16 percent a year earlier. The Tier-I capital ratio was 13.88 percent, providing adequate headroom for growth.
Federal Bank shares rose 33.5% in 2025 as against a 17% rise in the Bank Nifty index.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.
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