The Federal Bank (FEDERALBNK) investor relations material

Executive summary

• Achieved record quarterly net profit of ₹1,259 crore in Q4 FY26, up 22% YoY, with net interest income rising 33% to ₹3,173 crore and operating profit up 55% to ₹2,276 crore.

• CASA balances and NRI deposits both crossed ₹1 lakh crore, with total deposits at ₹3.89 lakh crore and advances at ₹2.73 lakh crore, reflecting robust growth in both retail and wholesale segments.

• Asset quality at decadal best with GNPA at 1.62% and NNPA at 0.20%, and provision coverage ratio at 87.07%.

• Digital and partnership-led initiatives drove efficiency, with over 93.7% of transactions conducted digitally and new platforms launched for account opening and investment.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with an unmodified audit opinion from joint statutory auditors.

Financial highlights

• Net interest income for FY26 reached ₹10,657 crore, with net profit at ₹4,117 crore and operating profit at ₹7,206 crore.

• Fee income for Q4 FY26 was ₹991 crore, up 24% YoY; cost-to-income ratio improved to 47.28% in Q4.

• Gross advances at ₹2,68,369 crore, up 3.65% QoQ and nearly 13% YoY.

• Book value per share rose to ₹157.

• Standalone net profit for FY 2025-26 was Rs. 41,173.2 million, up from Rs. 40,518.9 million in FY 2024-25.

Outlook and guidance

• Management emphasized continued focus on profitability, prudent growth, and digital transformation.

• CASA ratio target of 36% remains intact, with continued branch expansion and productivity improvements.

• Credit cost guidance maintained at 50–60 bps, with ongoing review amid macro uncertainties.

• Capital adequacy ratio under Basel III improved to 17.25% as of March 31, 2026, from 16.40% a year earlier.

• Cost-to-income ratio expected to remain in the 53–56% range.