The Federal Bank (FEDERALBNK) investor relations material

Macro environment and growth backdrop

• Operating in a supportive macro environment with ~7% GDP growth and system credit growth at 19% YoY, outpacing nominal GDP.

• System-wide NPAs at multi-year lows (~1.8%), supporting continued de-risking for private banks.

• Inflation remains within RBI's tolerance band, and fiscal deficit is targeted at 4.3% of GDP for FY27.

• Comfortable current account deficit (~1.5% of GDP) and robust FX reserves (~$707bn) provide external stability.

Franchise, governance, and strategic evolution

• Sixth-largest private-sector bank in India by balance sheet, fully publicly held with no promoter.

• 70% of board are independent directors, bringing expertise from IAS, RBI, SBI, IIM Bangalore, and other institutions.

• History of disciplined growth, digital innovation, and strong governance, with recent leadership transition and brand refresh.

• Group companies include Fedfina (NBFC), Ageas Federal Life Insurance, and FedServ (operations/tech backbone).

Financial performance and capital position

• Q1 FY27 net profit at ₹1,177 Cr (+36.6% YoY), NII up 26.1% YoY, NIM at 3.33%, and ROE at 12.01%.

• Record annual profit in FY26 at ₹4,117 Cr; five-year total shareholder return of 360.6%, far outpacing benchmarks.

• Capital adequacy ratio at 16.97%, Tier-1 at 15.89%, and LCR in the 115-120% range.

• 85% of funding is granular (CASA + deposits under ₹3 Cr); both CASA and NRI deposits crossed ₹1 lakh Cr.