Federal Bank reported its second quarter earnings on Friday, October 16.
Its net interest income (NII) increased to 26.4% in the second quarter to ₹3,153.4 crore compared to ₹2,495.2 crore in the previous year.
Its net profit was up 45.% at ₹1,386 crore from ₹955 in the second quarter last year.
The lender’s asset quality improved in the quarter under review.
Its gross non-performing assets (NPA) contracted to 1.32% from the previous quarter’s 1.52%.
Its net NPA contracted marginally to 0.17% sequentially from 0.18%.
The bank’s provisions increased to ₹342 crore from ₹318 crore sequentially but declined from last year’s ₹363 crore.
The increase in profitability is also attributable partly to a 37.7% jump in the lender’s other income. Federal Bank’s other income at the end of the September quarter stood at ₹1,490 crore from ₹1,082 crore during the same quarter last year.
Federal Bank’s net interest margin in the second quarter was at 3.32% compared to 3.06% in the year-ago period.
It reported fresh slippages of ₹420 crore compared to ₹409 crore in the prior quarter. The lender’s return on assets increased to 1.32% from 1.09% last year.
It net advances were up 22% at ₹2.98 lakh crore compared to ₹2.44 lakh crore, while its total deposits increased 19% to ₹3.42 lakh crore from ₹2.88 lakh crore in the year-ago period.
Its current account savings account (CASA) ratio was at 32.04% compared to 31.01% last year.
Federal Bank shares gained post its second quarter results and were up 0.6% at ₹339 apiece at 1.30 pm. The stock has declined 1.9% in the past month but have gained 26% in 2026, so far.
Also Read: Federal Bank Q2 Results: Stock gains after stable slippages, margins expand