Federal Bank's Q2 profit jumps 45% to ₹1,386 crore; gross NPA ratio 1.32%

What happened

• Federal Bank's net profit for the September 2026 quarter was ₹1,386 crore, up 45% from ₹955 crore a year earlier, against ₹1,177 crore in the June quarter, according to HDFC Sky and Upstox. HDFC Sky published its report at 5:17 PM on Friday.
• Core net interest income rose 26% from a year earlier to ₹3,153 crore, HDFC Sky said, and the net interest margin was 3.32%, 0.26 percentage points higher than a year earlier.
• The gross NPA ratio was 1.32% against 1.52% in the June quarter. Fresh slippages were ₹420 crore against ₹579 crore a year earlier. The capital adequacy ratio was 16.84% against 16.97% in June.
• HDFC Sky reported that the bank raised $1.5 billion of FCNR(B) deposits under the RBI's concessional swap scheme, which it said helped reduce reliance on bulk deposits. Loan growth was 22%.
• The shares closed at ₹335.80 on Kite data, up 0.24% from ₹335, before the results.

Why it matters

Good to know: FCNR(B) deposits are term deposits that non-resident Indians hold in foreign currency. Under the RBI scheme, a bank that raises them can swap the foreign currency into rupees at a concessional rate.

Key facts

Net profit

₹1,386 crore (₹955 crore a year earlier)

Core net interest income

₹3,153 crore, up 26%

Net interest margin

3.32%

Gross NPA ratio

1.32% (1.52% in June)

FCNR(B) deposits raised

$1.5 billion

Read the source

• Federal Bank Q2 Net Profit Jumps 45% on FCNR DepositsHDFC Sky
• Federal Bank Q2 results: Net profit soars 45% YoY to ₹1,386 crore, asset quality improvesUpstox

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