Federal Bank Q2 results: Standalone PAT declines over 9% YoY, highest ever NII posted at Rs 2,495 crore

The Federal Bank has announced its quarterly results for the July-September quarter, showing a decline of 9.6% year-on-year (year-on-year) in standalone net profit at Rs 955.26 crore, against Rs 1,056.69 crore in the year-ago period. However, the bank reported its highest ever net interest income (NII) at Rs 2,495 crore. Despite the year-on-year decline, the bank’s net profit rose 10.85% quarter-on-quarter.

The Federal Bank also noted that it reported its highest ever commission income of Rs 886 crore, underscoring the continued momentum in non-interest income streams.

The CASA ratio rose to 31.01%, up 94 basis points YoY, while CASA deposits grew 10.71% YoY to Rs 89,591 crore. Meanwhile, operating profit rose 5.65% sequentially to Rs 1,644.17 crore.

Profitability metrics remained robust, with a ROA of 1.09% and an ROE of 11.01%, indicating sustainable efficiency and returns. Net interest margin (NIM) improved by 12 basis points quarter-on-quarter to 3.06%, supported by healthy credit growth and stable financing costs. Total deposits increased by 7.36% year-on-year, while net advances increased by 6.23% year-on-year, underscoring balanced franchise growth.

Asset quality remained among the best over the past decade, with a GNPA of 1.83% and a NNPA of 0.48%, reflecting prudent lending practices. The Capital Adequacy Ratio (CRAR) was a comfortable 15.71%, which ensures strong capital buffers. Meanwhile, the Provision Coverage Ratio (PCR) remained robust at 73.45%, strengthening the bank’s financial resilience.

The bank’s net assets increased 11.93% year-on-year from Rs 31,108.20 crore to Rs 34,819.84 crore as on September 30, 2025. The Capital Adequacy Ratio (CRAR), calculated as per Basel III guidelines, remained strong at 15.71%, underscoring the bank’s solid capital position and financial stability. presence, the bank’s total number of banking branches reached 1,595, while the number of ATMs and recyclers, including mobile ATMs, reached 2,082 as of September 30, 2025, reflecting its continued focus on improving accessibility and customer reach. On Friday, Federal Bank shares closed 1.3% lower at Rs 212.40 on the BSE.

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