Federal Bank on Wednesday reported a net profit of ₹1,259.10 crore for the quarter ended March 2026 (Q4 FY26), up about 22% year-on-year, driven by stronger core earnings and improved margins..
For the full financial year, net profit stood at ₹4,117.32 crore.
“Our Q4 performance represents a strong operational quarter that is fully aligned with our strategic roadmap. We have made significant progress in restructuring our liabilities by focusing on retail mobilization and reducing reliance on high-value deposits, which is reflected in our optimized cost of funds. Reaching the ₹1 lakh crore milestone in both CASA and NR deposits concurrently is a structural achievement that reinforces our funding moat,” said managing director and CEO KVS Manian.
1 April 2026
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Net interest margin (NIM) for the quarter stood at 3.74%, while return on assets (RoA) was at 1.36%.
Asset quality improved, with gross non-performing assets (GNPA) at 1.62% and net NPAs at 0.20%, both at record lows, the bank said.
On the liabilities side, the bank saw traction in low-cost deposits, with its CASA ratio rising to 32.94%. CASA balances and non-resident (NR) deposits both crossed the ₹1 lakh crore mark during the quarter.
Total deposits rose 5.41% quarter-on-quarter to ₹3,13,909.39 crore, while gross advances grew 3.65% to ₹2,68,369.03 crore.
The bank said it continued to see growth in retail and commercial banking segments, while maintaining a calibrated approach to asset mix and risk.
