Mumbai: Federal Bank reported a robust and structurally strong performance for the quarter ended 31 March 2026 (Q4 FY26). This was a strong operational quarter, moving f irmly in line with the strategic direction of the Bank. The period was characterized by margin expansion, a surge in fee income, and asset quality reaching new historical benchmarks.

Key Highlights – Q4 FY26

  • Profitability: Net profit stood at ₹1,259.10 crore for the quarter, a sequential growth of 20.93% and, supported by stronger core earnings. The net profit for the financial year stands at ₹4,117.32 crore.
  • Liability Restructuring: The Bank successfully optimized its funding profile by focusing on retail liabilities and deliberately reducing the volume of high-value deposits to lower the overall Cost of Funds (5.46%).
  • NR Franchise Milestone: Further strengthening its core moats, the NR deposit book crossed the ₹1 lakh crore milestone, reaching ₹1,02,619.69 crore (up 7.04% QoQ).
  • CASA Momentum: The CASA ratio improved to 32.94%, up 271 bps YoY.
  • Asset Mix & Growth: The structural shift in the asset mix is yielding results, with strong growth in desired segments like Commercial Banking (+5.92% QoQ) and Retail Banking (+3.21% QoQ).
  • Fee Income: The “Fee Story” remains a standout, with fee income reaching ₹990.92 crore, up 10.54% QoQ.
  • Asset Quality: GNPA and NNPA reached record lows of 1.62% and 0.20% respectively.
  • Return Metrics: RoA reached 1.36% and NIM reached 3.74%, while RoE expanded to 13.69%.
  • Wealth Management: The Bank successfully launched its wealth offering during the quarter, marking a new chapter in its service offerings.
  • Total Business reached ₹5,78,503.76 crore, registering 4.54% QoQ growth.
  • Gross Advances rose to ₹2,68,369.03 crore, up 3.65% QoQ, led by Commercial Banking, Retail, and the CV/CE segments.
  • Total Deposits rose to ₹3,13,909.39 crore, up 5.41% QoQ, led by Resident and NR book.
  • CASA balances grew to ₹1,03,390.30 crore, up 8.26% QoQ, crossing the ₹1 lakh crore milestone.
  • Operating Efficiency: Cost-to-Income ratio improved to 47.28%, a sequential reduction of 665 bps, reflecting strong operating leverage.
  • Provision Coverage Ratio (excluding TWO) improved to 87.07%, up 1,193 bps sequentially.

Commenting on the performance, Mr. KVS Manian, Managing Director & CEO, said: “Our Q4 performance represents a strong operational quarter that is fully aligned with our strategic roadmap. We have made significant progress in restructuring our liabilities by focusing on retail mobilization and reducing reliance on high-value deposits, which is reflected in our optimized cost of funds. Reaching the ₹1 lakh crore milestone in both CASA and NR deposits concurrently is a structural achievement that reinforces our funding moat. While shifting the asset mix is a medium-term journey, we are seeing the desired growth in our chosen segments. With our new in-house Wealth Platform now live and our RoA and NIMs returning to pre-rate cut levels, we are well-positioned for the next phase of our growth.”