Mumbai: Federal Bank reported a record standalone net profit of ₹1,176.93 crore for the first quarter of FY27 ended June 30, marking a 36.57% year-on-year increase, driven by strong growth in core banking operations and improved asset quality.
The bank’s net interest income (NII) rose 26.06% to ₹2,945.89 crore, while fee income increased 21.71%, offsetting subdued treasury income during a volatile market environment. Net interest margin (NIM) expanded 39 basis points to 3.33%, supported by a lower cost of funds.
Federal Bank’s asset quality improved significantly, with net non-performing assets (NPA) declining to a decadal low of 0.18%, while gross NPA stood at 1.52%. Fresh loan slippages fell 37.79% year-on-year to ₹409.48 crore, and the provision coverage ratio strengthened to 87.37%.
The bank’s total business grew 13.05% to ₹5.98 lakh crore, nearing the ₹6 lakh crore milestone. Deposits increased 11.37% to ₹3.20 lakh crore, while gross advances rose 14.94% to ₹2.81 lakh crore. CASA deposits climbed 18.26% to ₹1.03 lakh crore, improving the CASA ratio to 32.23%.
Key business segments continued to register healthy growth, including gold loans (33%), credit cards (36%), commercial banking (22.96%), and corporate and institutional banking (16.12%), whose loan book crossed ₹1 lakh crore.
Managing Director & CEO KVS Manian said the strong quarterly performance reflected the strength of the bank’s core business, with robust earnings, improved margins, record-low NPAs, and a resilient balance sheet positioning it well for the remainder of FY27.
