Federal Bank reports record NII and fee income for Q2 FY26

Federal Bank reported all-time high net interest income of ₹2,495 crore and fee income of ₹886 crore for Q2 FY26. The bank’s operating profit reached ₹1,644.17 crore, increasing by 5.65% quarter-on-quarter, while net profit rose by 10.85% QoQ to ₹955.26 crore. Return on assets stood at 1.09% and return on equity at 11.01%.

Total deposits grew by 7.36% year-on-year to ₹288,919.58 crore, with the CASA ratio improving to 31.01%. Net advances increased by 6.23% YoY to ₹244,657.06 crore. Asset quality remained strong, with gross NPA at 1.83% and net NPA at 0.48%, marking the best decadal performance. The bank’s capital adequacy ratio was 15.71%, and provision coverage ratio was 73.45%.

Additionally, Federal Bank announced a board meeting on October 24, 2025, to consider raising funds through various modes, including rights issue, preferential allotment, or qualified institutions placement. The bank also showcased its operational strength and digital migration efforts, with digital transactions accounting for over 93.5% of total transactions.