Private lender Federal Bank reported a strong performance for the quarter ended June 2026 (Q1FY27), with net profit rising 36.6% year-on-year (YoY) to Rs 1,177 crore, driven by healthy growth in net interest income (NII) and lower provisions.
The private sector lender's NII grew 26.1% YoY to Rs 2,946 crore, compared with Rs 2,337 crore in the corresponding quarter last year.
On the asset quality front, gross non-performing assets (GNPA) improved to 1.52% from 1.62% in the March quarter, while net NPA (NNPA) declined to 0.18% from 0.20% sequentially.
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Provisions fell sharply to Rs 317 crore from Rs 741 crore in the previous quarter and Rs 400 crore a year ago. Fresh slippages also eased to Rs 409 crore, compared with Rs 474 crore in Q4FY26.
The bank reported loan growth of 15% YoY and 5% quarter-on-quarter (QoQ).
However, net interest margin (NIM) moderated to 3.33% from 3.74% in the preceding quarter. Meanwhile, tax expense increased to Rs 402.7 crore from Rs 294.4 crore in the year-ago period.
Key Highlights
- Net profit up 36.6% YoY at Rs 1,177 crore
- NII rises 26.1% YoY to Rs 2,946 crore
- Gross NPA improves to 1.52% from 1.62% QoQ
- Net NPA declines to 0.18% from 0.20% QoQ
- Provisions fall to Rs 317 crore
- Fresh slippages ease to Rs 409 crore
- Loan growth stands at 15% YoY and 5% QoQ
- NIM moderates to 3.33% from 3.74% QoQ
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