The Federal Bank (FEDERALBNK) Q4 25/26 earnings summary

Executive summary

• Achieved record quarterly net profit of ₹1,259 crore in Q4 FY26, up 22% year-over-year, 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, reflecting a strategic focus on granular, stable funding.

• Asset growth was broad-based, with commercial banking, gold loans, and LAP segments showing robust expansion.

• 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

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

• Total business assets reached INR 578,959 crore, up 4.63% QoQ and nearly 12% YoY.

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

• Gross advances at INR 268,369 crore, up 3.65% QoQ and nearly 13% YoY.

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

Outlook and guidance

• Confident of accelerating growth in chosen segments, with further traction expected in FY 2027.

• CASA ratio target of 36% remains intact, with continued focus on granular liabilities.

• Credit cost guidance maintained at 50–60 bps, with no immediate change despite one-time provisions.

• Sustained improvement in asset quality and efficiency metrics expected, with ongoing investments in technology and partnerships.

• Board recommended a dividend of Rs. 1.20 per share, maintaining the payout from the previous year.