Federal Bank Limited posted a 36.57 percent year-on-year rise in standalone net profit for the first quarter of fiscal 2026-27. Growth came from wider interest margins and lower provisions for credit risk, pushing shares to new highs.
Standalone net profit increased to 1,176.93 crore rupees from 861.75 crore rupees a year earlier, exceeding analyst forecasts.
Shares traded heavily on the National Stock Exchange and closed 6.95 percent higher at 349.30 rupees. The stock reached a 52-week high of 351 rupees during the session.
Total interest earned rose 8.25 percent to 7,238.31 crore rupees. Net interest income grew 26.06 percent to 2,945.89 crore rupees, outpacing the 14.94 percent loan book expansion.
Low-cost CASA deposits increased 18.26 percent to 1,03,163 crore rupees, lifting the CASA ratio to 32.23 percent.
Provisions and contingencies fell 58.11 percent sequentially to 310 crore rupees. The gross non-performing asset ratio improved to 1.52 percent, while the net NPA ratio reached a decadal low of 0.18 percent. Fresh slippages declined to 409.48 crore rupees. The capital adequacy ratio stood at 16.97 percent.
