Fedbank Financial Services grows AUM, net profit in Q2 FY'26

Fedbank Financial Services announced a 13.5% year-on-year (Y-o-Y) AUM growth to INR16,136 crores for Q2 FY'26, which would be 28% Y-o-Y excluding business loans. Gold AUM increased by 36.4% Y-o-Y to INR6,731 crores, with tonnage up 4%. Mortgage AUM grew 22.6% Y-o-Y to INR8,796 crores. Net interest income saw a 10.9% Y-o-Y rise, and net profit increased by 24.2% Y-o-Y to INR80.2 crores.

The company continued its de-risking strategy, selling INR79.5 crores of deep delinquent non-performing assets from Small Ticket LAP and Home Loans to an asset reconstruction company for an upfront cash payment of INR32.6 crores. Additionally, INR115.6 crores of business loan portfolio was assigned and derecognized from AUM, reducing unsecured lending exposure to under 1%. The gross stage 3 stood at 1.9% after the ARC sale.

Fedbank Financial Services opened 57 new gold loan branches and co-located 49 small ticket LAP branches within gold loan premises in Q2, bringing the total branches to 699. Disbursals for the quarter amounted to INR5,205 crores, up 36.5% Y-o-Y, with MT LAP disbursing INR554 crores. The company secured ECBs totaling $150 million and maintained a credit cost of 0.9% for the quarter.