The Federal Bank Limited (FEDERALBNK)
₹338.00 +0.90% last close, 16 Oct
Q2 FY27 results
The Federal Bank Limited reported Q2 FY27 results on 16 Oct 2026: net interest income ₹3,599 Cr (+29.2% year on year, +8.3% on the previous quarter), and net profit ₹1,564 Cr (+57.7% year on year).
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹3,599 | +29.2% | +8.3% |
| Operating profit | ₹2,475 | +39.8% | +18.2% |
| Net profit | ₹1,564 | +57.7% | +20.5% |
| EPS (₹) | 6.07 | +50.2% | +19.3% |
| Gross NPA | 1.32% | — | — |
- Profit +31% above its own trend
- Gross NPA down 51 bps YoY
Against its own trend: net profit of ₹1,564 Cr was +31.3% against the ₹1,191 Cr its recent growth pointed to (above trend). This is a statistical baseline, not an analyst estimate.
Share price since the results: +0.9% (close before the filing to the latest close).
FEDERALBNK delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 28.89% of the FEDERALBNK shares traded on NSE were taken to delivery, against the stock's own 20-session average of 57.76%. That is lower than usual for this stock. It traded 4.7 times its average daily volume. In FEDERALBNK futures, open interest rose 1.83% while the futures price rose 0.87%: long buildup (new long positions).
Delivery in the last 5 sessions: 61.2% · 45.1% · 63.3% · 42.4% · 28.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
The Federal Bank Limited has published the audio recording of its earnings call held on October 16, 2026, regarding the unaudited financial results for the quarter and half year ended September 30, 2026. The disclosure complies with Regulation 30 of the SEBI Listing Regulations. The audio link has been hosted directly on the bank's official website. This is a standard post-earnings compliance filing containing no new standalone financial data.
- Earnings call conducted on October 16, 2026, for Q2 FY27 results
- Audio recording uploaded to the bank's official website pursuant to Regulation 30 of SEBI LODR
- Pertains to financial performance for the quarter and half year ended September 30, 2026
Federal Bank reported its highest-ever quarterly net profit of ₹1,386.09 crore for Q2 FY27, up 45.10% YoY, driven by strong core earnings. Net interest income (NII) grew 26.38% YoY to ₹3,153.40 crore as NIM expanded 26 bps YoY to 3.32%. Asset quality improved to decadal lows with Gross NPA at 1.32% and Net NPA at 0.17%, while provision coverage reached 86.78%. Gross advances crossed ₹3 lakh crore (up 21.66% YoY) and deposits reached ₹3,42,693.56 crore (up 18.61% YoY).
- Net profit rose 45.10% YoY to an all-time high of ₹1,386.09 crore; EPS at ₹22.26
- NII surged 26.38% YoY to ₹3,153.40 crore with NIM expanding 26 bps YoY to 3.32%
- Asset quality hit decadal lows with GNPA at 1.32% (down 51 bps YoY) and NNPA at 0.17% (down 31 bps YoY)
- Gross advances reached ₹3,01,687.80 crore (+21.66% YoY) and CASA grew 22.56% YoY to ₹1,09,803.15 crore
- Return on Assets (RoA) reached 1.32% and Return on Equity (RoE) expanded 256 bps YoY to 13.57%
Federal Bank published its investor presentation for Q2 FY27, reporting its highest-ever quarterly net profit of ₹1,386 crore, up from ₹1,177 crore in Q1 FY27 and ₹955 crore (excl one-off) in Q2 FY26. Net advances grew 16% YoY and 3% QoQ to ₹2,48,546 crore, while retail deposits expanded 22% YoY to ₹2,98,226 crore. Asset quality showed consistent improvement with Gross NPA dropping to 1.32% and Net NPA to 0.17%, supported by a Provision Coverage Ratio of 86.78%. Return metrics remained strong with RoA at 1.32% and RoE at 13.57%.
- Highest-ever quarterly Net Profit of ₹1,386 Cr in Q2 FY27 compared to ₹955 Cr in Q2 FY26
- Net Interest Margin (annualized) stood at 3.32% vs 3.06% in Q2 FY26
- Asset quality strengthened with Gross NPA at 1.32% and Net NPA at 0.17% (PCR at 86.78%)
- Customer Assets crossed ₹3 lakh crore (up 20% YoY) and Balance Sheet reached ₹4.27 lakh crore
- Credit cost declined to 31 bps from 50 bps in Q2 FY26, with slippages dropping to 59 bps
Federal Bank reported standalone net profit of ₹1,346.09 crore for Q2 ended September 30, 2026, marking a 40.9% growth year-on-year compared to ₹955.26 crore in Q2 FY26. Total income expanded to ₹9,211.42 crore compared to ₹7,782.43 crore in the year-ago period, driven by interest earned of ₹7,720.98 crore. Operating profit rose 35.3% YoY to ₹2,225.37 crore, while provisions were lower at ₹342.19 crore vs ₹363.09 crore. The bank transitioned to the fair value method for ESOP accounting, which lowered profit after tax by ₹29.61 crore during the period.
- Standalone net profit grew 40.9% YoY to ₹1,346.09 crore (₹134,609 lakh)
- Total income increased to ₹9,211.42 crore (₹921,142 lakh) from ₹7,782.43 crore in Q2 FY26
- Operating profit stood at ₹2,225.37 crore, rising 35.3% YoY
- Capital Adequacy Ratio (Basel III) stood robust at 16.84%
- Fair value ESOP accounting change reduced PAT by ₹29.61 crore (₹2,961.06 lakh)
The Federal Bank Limited has appointed Mr. Rajesh Varrier as an Additional Director (Non-Executive Independent Director) for a 3-year term effective October 16, 2026. Mr. Varrier is currently Cognizant's President of Global Operations and Chairman & Managing Director of Cognizant India, having previously held senior roles at Infosys and Aditya Birla Sun Life Insurance. Shareholder approval will be sought within three months or at the next general meeting pursuant to SEBI Listing Regulations. The appointment bolsters the bank's board oversight in technology and digital operations.
- Appointed as Non-Executive Independent Director for a period of 3 consecutive years effective October 16, 2026
- Shareholder approval required within 3 months or at the next general meeting under Regulation 17(1C)
- Currently serves as CMD of Cognizant India and President of Global Operations
- Previous leadership includes EVP at Infosys Americas and CIO/Digital Officer at Aditya Birla Sun Life Insurance
CARE Ratings Ltd has reaffirmed Federal Bank's Issuer Rating and various bond facilities at 'CARE AA+; Stable'. The reaffirmed debt instruments total ₹3,200 crore, comprising ₹1,500 crore in Infrastructure Bonds and ₹1,700 crore across three tranches of Tier-II Bonds (₹200 cr, ₹500 cr, and ₹1,000 cr). The final rating rationale was received by the bank on October 09, 2026. This reaffirmation reflects continued credit stability and borrowing capacity without any upgrade or downgrade.
- CARE Ratings reaffirmed Federal Bank's Issuer Rating at 'CARE AA+; Stable'
- Reaffirmed rating of 'CARE AA+; Stable' for ₹1,500.00 crore of Infrastructure Bonds
- Reaffirmed rating of 'CARE AA+; Stable' across three Tier-II bond issuances totaling ₹1,700.00 crore (₹200 cr, ₹500 cr, and ₹1,000 cr)
- Rating agency rationale was formally received by the bank on October 09, 2026
The Federal Bank Limited announced the launch of a new domestic retail deposit offering named 'Verto Resident Savings Account' on October 7, 2026. This launch is aimed at the domestic market to augment the bank's core deposit base. While detailed commercial terms or financial targets were not disclosed, retail deposit mobilization remains critical to support the bank's TTM revenue of ₹34,901 crore and maintain liability margins. The filing represents regular product addition under business operations.
- Product named 'Verto Savings Account' launched on October 7, 2026
- Categorized specifically as a Resident Savings account
- Aimed solely at the domestic Indian banking market
- Detailed deposit targets and pricing terms were not disclosed
The Federal Bank Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by the bank's Registrar and Share Transfer Agent, Integrated Registry Management Services Private Limited. It confirms that securities received for dematerialization during the quarter were confirmed, listed on the exchanges, and mutilated/cancelled within 15 days of verification. This is a standard quarterly administrative filing with no financial impact.
- Regulation 74(5) compliance certificate submitted for the quarter ended September 30, 2026
- Issued by Registrar and Transfer Agent Integrated Registry Management Services Private Limited
- Confirms security certificates were verified, mutilated, and cancelled within 15 days
- Filing dated October 3, 2026 under secretarial reference SEC/LODR/236/2026-27
The Reserve Bank of India (RBI) has approved the appointment of Mr. Virat Sunil Diwanji as Executive Director on the Board of Federal Bank for a period of 3 years. He will assume charge as Additional Executive Director starting October 12, 2026, subject to shareholder approval within 3 months. Mr. Diwanji has served as National Head - Consumer Banking at Federal Bank since April 10, 2025, and previously spent over 30 years at Kotak Mahindra Group. This leadership addition strengthens the governance of the bank's retail and consumer banking franchise.
- RBI approval received via letter dated September 28, 2026, for a 3-year term
- Assumption of charge as Additional Executive Director effective October 12, 2026
- Shareholder approval to be obtained within a statutory window of 3 months
- Brings over 30 years of prior leadership experience from Kotak Mahindra Group
Federal Bank responded to an NSE clarification query regarding media reports claiming an acquisition of Jana Small Finance Bank was in its final stages. The bank stated that it evaluates growth opportunities in the ordinary course of business, but confirmed there is no material event or information requiring disclosure under SEBI Regulation 30. Furthermore, the bank noted there is no material impact on the company stemming from the media article. Federal Bank holds a market capitalization of Rs 80,849 Cr and reported TTM revenue of Rs 34,901 Cr.
- Responded on September 25, 2026, to NSE query regarding reported Jana SFB deal.
- Clarified no material event or undisclosed information under SEBI Regulation 30 exists.
- Confirmed no material financial or operational impact from the news report.
- Follows earlier communication on similar matters dated August 25, 2026.
India Ratings and Research has affirmed Federal Bank's debt instruments at 'IND AA+'/Stable, covering Rs 1,700 crore of Basel III Tier 2 debt and Rs 1,500 crore of infrastructure bonds. The agency highlighted the bank's improving geographic diversification beyond Kerala (loan share down to 27.7% in 1QFY27) and stable asset quality with gross NPAs at 1.52% and net NPAs at 0.18%. Provision coverage ratio stood strong at 88.2% with a Tier 1 capital adequacy ratio of 15.9%. Profitability remains slightly constrained relative to higher-rated peers, with net interest margin at 3.33% in 1QFY27.
- Affirmed 'IND AA+'/Stable rating on Rs 1,700 crore (INR 17,000 million) Basel III Tier 2 debt and Rs 1,500 crore (INR 15,000 million) Infrastructure bonds
- Gross NPA declined to 1.52% and net NPA stood at 0.18% in 1QFY27, supported by an 88.2% provision coverage ratio
- Advances portfolio reached INR 2,775 billion, with Kerala's share moderating to 27.7%
- Tier 1 capital ratio reported at 15.9% in 1QFY27 against 13.9% in FY26
- Adjusted net interest margin improved 13 bps qoq to 3.33% in 1QFY27
The Federal Bank Limited has allotted a total of 63,253 equity shares of face value Rs 2 each upon the exercise of employee stock options. The allotment comprises 7,000 shares under ESOS 2010, 54,283 shares under ESOS 2017, and 1,970 shares under ESIS 2023. Relative to the bank's massive equity base and market cap of Rs 83,548 crore, the dilution represents less than 0.003% of share capital, making it financially negligible.
- Total 63,253 equity shares of face value Rs 2 allotted on September 19, 2026
- 7,000 shares allotted under the ESOS 2010 Scheme
- 54,283 shares allotted under the ESOS 2017 Scheme
- 1,970 shares allotted under the ESIS 2023 Scheme
Federal Bank has formally established a US$ 500 million Medium Term Note (MTN) Programme following board approval granted on September 17, 2026. The offering circular for the programme has been submitted to NSE IFSC Limited. The US$ 500 million programme enables the bank to raise foreign currency debt in tranches, providing flexibility to fund international or foreign currency loan assets. At current exchange rates, this programme is equivalent to approximately ₹4,150-4,200 crore, or roughly 10.7% of the bank's net worth of ₹38,705 crore.
- Established a US$ 500 million Medium Term Note (MTN) Programme on September 18, 2026
- Follows prior Board of Directors approval granted on September 17, 2026
- Offering circular submitted and listed on NSE IFSC Limited
- Programme represents approximately 10.7% of the bank's net worth (₹38,705 crore)
The Board of Directors of The Federal Bank Limited has approved the establishment of a Medium Term Note (MTN) programme for an aggregate amount not exceeding USD 500 million (or equivalent in other currencies). This modifies an earlier board approval dated August 21, 2026. The programme authorizes the issuance of secured or unsecured bonds, including foreign currency notes, across one or more tranches through branches including its GIFT City banking unit, to be listed on international exchanges.
- Approved Medium Term Note (MTN) programme for up to USD 500 million
- Modifies prior board approvals granted on August 21, 2026
- Permits issuance in one or more tranches of secured or unsecured foreign currency notes
- Notes may be issued via GIFT City banking unit and listed on international exchanges including India INX / NSE IFSC
The Federal Bank Limited has informed exchanges regarding interactions with institutional investors and analysts scheduled from September 21, 2026, to September 30, 2026. The meetings will be conducted through virtual mode or in-person sessions. The bank confirmed that no unpublished price sensitive information (UPSI) will be shared during these interactions. With Federal Bank commanding a market cap of Rs 86,122 Cr and TTM revenue of Rs 34,901 Cr, this disclosure represents standard regulatory compliance under SEBI LODR Regulation 30.
- Interactions scheduled to be held from September 21, 2026 to September 30, 2026
- Meetings to take place via virtual mode or in-person interactions
- Explicitly stated that no unpublished price sensitive information (UPSI) will be shared
- Intimation filed under Regulation 30 of SEBI LODR Regulations
Financial Performance
Revenue Growth by Segment
Commercial Banking grew 27% YoY to INR 27,199 Cr; Retail Banking grew 14% YoY to INR 69,268 Cr; Gold Loans grew 21% YoY to INR 30,505 Cr; CV/CE Advances grew 35% YoY to INR 4,644 Cr; Corporate Banking grew 8% YoY to INR 79,774 Cr.
Geographic Revenue Split
Not explicitly disclosed in percentage by region, but the bank maintains a strong liability franchise with a sizable portion of non-resident (NRI) deposits and is expanding its geographic footprint across India.
Profitability Margins
Net Interest Margin (NIM) stood at 3.06% in Q2 FY26, improving 12 bps from 2.94% in Q1 FY26. Return on Average Assets (ROA) was 1.09% in Q2 FY26 compared to 1.23% in FY25. Return on Average Equity (ROE) was 11.01% in Q2 FY26, down from 13.03% in FY25.
EBITDA Margin
Pre-Provision Operating Profit (PPOP) for FY25 was INR 6,101 Cr, representing an 18% YoY growth. PPOP to average total assets for FY24 was 2.88%.
Capital Expenditure
Not disclosed as traditional CapEx; however, the bank raised INR 3,040 Cr via QIP and INR 959 Cr from IFC in July 2023 to support business scale-up.
Credit Rating & Borrowing
Credit ratings reaffirmed based on strong liability franchise. Total borrowings stood at INR 23,726 Cr as of March 31, 2025, a 32% increase YoY. Cost of borrowing decreased by 3 bps in Q2 FY26.
Operational Drivers
Raw Materials
Cost of Funds (Deposits) is the primary input cost. Total Deposits reached INR 2,83,647 Cr (up 12% YoY), with Term Deposits at INR 1,97,270 Cr (up 11%) and CASA at INR 86,378 Cr (up 16%).
Import Sources
Sourced domestically across India, with a significant contribution from Non-Resident Indian (NRI) deposits.
Key Suppliers
Retail and corporate depositors; Reserve Bank of India (RBI) for liquidity windows.
Capacity Expansion
Total Assets stood at INR 3,56,080 Cr in Q2 FY26. Expansion is driven by digital migration and a mix of organic growth and fintech partnerships.
Raw Material Costs
Deposit costs decreased by 19 bps in Q2 FY26, which directly contributed to NIM expansion as the yield on advances only dropped by 14 bps.
Manufacturing Efficiency
Profit per employee stood at INR 23 lakh; Business per employee reached INR 32.06 Cr in Q2 FY26.
Logistics & Distribution
Distribution strategy involves a mix of physical branches and digital platforms; fee to average assets ratio crossed 1% for the first time in Q2 FY26.
Strategic Growth
Expected Growth Rate
12-15%
Growth Strategy
Recalibrating asset mix toward high-yield segments (Credit Cards, CV/CE, and Commercial Banking); scaling organic credit card sourcing; pilot launching tractor business; and expanding wealth management and forex services to drive fee income above 1% of average assets.
Products & Services
Retail loans, Gold loans, Commercial Vehicle/Construction Equipment (CV/CE) finance, Corporate banking, Credit cards, Wealth management, and Supply chain finance (dealer/vendor finance).
Brand Portfolio
Federal Bank, Fedbank Financial Services (Fedfina), FedServ.
New Products/Services
Tractor loans (pilot launched Q1 FY26), organic credit cards, and structured business solutions via a new dedicated desk.
Market Expansion
Focusing on mid-corporate ecosystems and high-yield retail segments; expanding digital end-to-end integrated supply chain platforms.
Market Share & Ranking
Positioned as a market leader in niche segments like NRI deposits and specific commercial banking verticals.
Strategic Alliances
Partnerships with various fintech firms for asset acquisition and digital service delivery.
External Factors
Industry Trends
Industry-wide moderation expected in FY 2025-26 due to slower NBFC/unsecured loan growth and revised project finance norms; shift toward relationship-driven banking to sustain margins.
Competitive Landscape
Competes with large private banks; differentiates through lower cost of funds and niche market expertise in CV/CE and NRI services.
Competitive Moat
Strong liability franchise with high core deposit ratio (98%); diversified and granular portfolio with improving asset quality (GNPA reduced 71 bps in Commercial Banking to 2.07%).
Macro Economic Sensitivity
Sensitive to interest rate cycles due to T+1 repricing; GDP growth correlates with the 27% growth seen in the Commercial Banking vertical.
Consumer Behavior
Increasing demand for digital-first banking and wealth management services; shift toward organic credit card adoption.
Geopolitical Risks
Geopolitical uncertainties noted as a potential risk factor for the CV/CE sector predictability in FY 2025-26.
Regulatory & Governance
Industry Regulations
RBI guidelines on gold loans (Digi-biz), LCR provisioning, and revised project finance norms are key regulatory hurdles affecting growth in FY26.
Taxation Policy Impact
Effective tax rates apply; specific fiscal policy impacts not detailed beyond standard corporate tax.
Legal Contingencies
Not disclosed in specific INR values; bank monitors 'connected exposures' and maintains a management overlay of INR 46 Cr for potential stress.
Risk Analysis
Key Uncertainties
MFI segment stress (credit cost was elevated in Q1 FY26); regulatory changes in project finance; and potential margin compression in a falling interest rate environment.
Geographic Concentration Risk
Historically strong in Southern India, but actively diversifying; NRI deposits remain a core but concentrated liability source.
Third Party Dependencies
Reliance on fintech partners for a portion of the loan book; shared upside/downside models in fintech collaborations.
Technology Obsolescence Risk
High focus on IT risk and information security governance following industry-wide regulatory scrutiny of peer banks.
Credit & Counterparty Risk
Gross NPA at 1.83% and Net NPA at 0.48% as of Q2 FY26; Provision Coverage Ratio (PCR) remains healthy at 73.45%.
