Federal Bank posted a net profit of ₹955.3 crore for the July-September quarter of the financial year 2025-26 (Q2FY26), exceeding CNBC-TV18’s poll estimate of ₹895 crore. However, the net profit marks a 9.6% year-on-year decline from ₹1,057 crore that the Kochi-based private lender posted a year ago.

The bank’s Net Interest Income (NII), a key metric of profitability, grew 5.4% YoY to ₹2,495.2 crore, up from ₹2,367.3 crore, reflecting healthy core performance.

Federal Bank's asset quality showed notable improvement. Gross Non-Performing Assets (NPA) declined to 1.83% from 1.91% in the previous quarter, with the absolute figure falling to ₹4,532 crore from ₹4,669.7 crore.

Net NPA remained stable at 0.48% QoQ, with a slight increase in value to ₹1,165.2 crore from ₹1,157.6 crore.

Provis

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