New Delhi, October 16 (H.S.): Private-sector lender Federal Bank Limited on Friday announced its results for the second quarter of the current financial year 2026–27, covering July to September. The bank reported a 45.10 per cent year-on-year increase in net profit, which rose to a record Rs 1,386.09 crore.

Federal Bank recorded strong annual growth in profitability, with net profit climbing 45.10 per cent to approximately Rs 1,386 crore, compared with Rs 955 crore in the corresponding quarter of the previous financial year. The bank’s net interest income (NII) also increased by 26.4 per cent year-on-year to Rs 3,153.4 crore, up from Rs 2,495.2 crore in the same period last year.

The bank’s net interest margin (NIM) expanded by 26 basis points to 3.32 per cent, while its cost of deposits declined by 39 basis points to 5.18 per cent.

The bank stated that its asset quality had reached its strongest level in the past decade. During the quarter, its gross non-performing assets (GNPA) ratio improved to 1.32 per cent, while its net non-performing assets (NNPA) ratio declined to 0.17 per cent. Both figures represented their lowest levels in the past 10 years. According to the bank, the ratios improved by 51 basis points and 31 basis points, respectively, on a year-on-year basis.

The Kerala-based private-sector lender recorded its lowest gross and net non-performing asset ratios in a decade. Following the announcement, its shares, listed on the National Stock Exchange (NSE), rose by 2.10 per cent to Rs 342.05.

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Hindusthan Samachar / Jun Sarkar