The bank has also announced that a meeting of the Board of Directors of the Bank will be held on Friday, October 16, 2026, inter-alia, to consider and approve the Un-audited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2026.
In Q1 of the current fiscal, Federal Bank reported a 36.6% year-on-year rise in net profit to Rs 1,177 crore for the June 2026 quarter compared with Rs 862 crore in the corresponding period last year. The private sector lender's performance was supported by robust growth in net interest income and a decline in provisions, alongside an improvement in asset quality.
Net interest income (NII), the difference between interest earned and interest expended, increased 26.1% year-on-year to Rs 2,946 crore from Rs 2,337 crore a year earlier. The figure also exceeded analysts' estimates of Rs 2,851 crore.
The bank's provisioning requirements eased during the quarter, with provisions falling to Rs 317 crore from Rs 400 crore in the year-ago period. However, tax expenses rose to Rs 402.7 crore compared with Rs 294.4 crore in the corresponding quarter last year.
Federal Bank also reported an improvement in its asset quality during the June quarter. The gross non-performing asset (GNPA) ratio declined to 1.52% from 1.62% in the March 2026 quarter. The net non-performing asset (NNPA) ratio also improved sequentially, easing to 0.18% from 0.20%.
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