Federal Bank Q2 Profit Surges 45.10% To ₹1,386.09 Crore, NPA At Decadal Lows

Mumbai: Federal Bank reported on October 16, 2026, that its net profit for the second quarter of the fiscal year 2027 surged by 45.10% year-on-year to ₹1,386.09 crore, setting a new record as the bank's highest quarterly earnings. Financial Highlights The bank's operating profit increased by 35.35% to ₹2,225.37 crore, while Net Interest Income (NII) climbed 26.38% to ₹3,153.40 crore.

Fee income also saw a significant jump of 31.86% to ₹1,167.71 crore, marking an all-time high. Asset Quality Federal Bank's Gross NPA decreased to 1.32% and Net NPA to 0.17%, both representing the lowest levels seen in a decade. Growth and Deposits Total business franchise expanded to surpass ₹6.4 lakh crore, up 20.12% year-on-year, with gross advances reaching ₹3,01,687.80 crore.

Total deposits grew by 18.61% to ₹3,42,693.56 crore. Operational Efficiency The Cost-to-Income ratio improved by 196 basis points year-on-year to 52.08%, while Return on Assets (RoA) improved by 23 basis points to 1.32%, and Return on Equity (RoE) expanded by 256 basis points to 13.57%. Expansion and Shares The bank added 12 branches during the quarter, increasing its network to 1,662 outlets.

Federal Bank's shares fell by 4% in response to reports of a potential takeover, raising concerns about integration challenges.