Federal Bank reported a net profit of ₹1,176.93 crore for the quarter ended June 30, 2026, a 36.57% increase from the corresponding period of the previous year. The bank's total business reached ₹5,97,615.83 crore, approaching the ₹6 lakh crore mark, supported by a 14.94% growth in gross advances. The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter at its meeting held on July 17, 2026. Following the results announcement, the bank made the transcript of the earnings call for the quarter ended June 30, 2026, available on its website.

Revenue and Profitability

The bank's core earnings engine showed strong momentum, with Net Interest Income growing 26.06% to ₹2,945.89 crore. Net Interest Margin expanded 39 basis points year-on-year to 3.33%, aided by a 57 basis points decline in the Cost of Deposits to 5.21%. Fee income rose 21.71%, while operating efficiency improved as the Cost-to-Income ratio reduced by 239 basis points to 52.50%. Return on Assets improved to 1.22% and Return on Equity expanded to 12.01%.

Asset Quality Improves

Asset quality metrics reached historic best levels during the quarter. Net Non-Performing Assets (NNPA) ratio fell to 0.18%, a decadal low for the bank, while Gross Non-Performing Assets (GNPA) ratio improved to 1.52%. Fresh slippages declined 37.79% year-on-year to ₹409.48 crore. The Provision Coverage Ratio (excluding technical write-offs) strengthened to 87.37%, providing a strong buffer against potential losses.

Key Highlights

• Net profit rose 36.57% YoY to ₹1,176.93 crore.
• Net Interest Income grew 26.06% to ₹2,945.89 crore.
• Net NPA improved to a decadal low of 0.18%.
• CASA balances grew 18.26% YoY to ₹1,03,163.15 crore.
• Total deposits stood at ₹3,20,117.66 crore, up 11.37% YoY.
• Capital Adequacy Ratio under Basel III stood at 16.97%.

The unaudited financial results were subjected to a limited review by the Joint Statutory Auditors, M S K A & Associates LLP and Suri & Co. The bank added 10 branches during the quarter, taking its total network to 1,650 outlets.

Federal Bank has made available the audio recording of its earnings call held on July 17, 2026, regarding the unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27). The recording is now accessible on the bank's official website, providing investors and analysts the opportunity to review the management's discussion on business updates and performance metrics for the period.

The disclosure, submitted under reference SEC/LODR/138/2026-27, complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was authenticated by Samir P Rajdev, Company Secretary of The Federal Bank Limited, on July 17, 2026.

Access to Recording

Stakeholders can access the full audio proceedings of the conference call through the dedicated link hosted on the bank's website. This initiative ensures transparency and allows market participants to revisit the details shared during the financial results discussion.

The bank had initially scheduled the conference call to discuss the quarterly performance, and the release of the recording marks the final step in the disclosure process for this specific investor relations event.