📊 Federal Bank Q2 FY2025‑26 Financial Summary
| Particulars | Q2 FY2025‑26 | Q1 FY2025‑26 | Q2 FY2024‑25 |
|---|---|---|---|
| Net Profit (PAT) | ₹955.26 Cr | ₹861.75 Cr | ₹1,056.69 Cr |
| Total Income | ₹7,824.30 Cr | ₹7,799.60 Cr | ₹7,541.23 Cr |
| Gross NPA (%) | 1.83% | 1.91% | 2.09% |
| Net NPA (%) | 0.48% | 0.48% | 0.57% |
| CASA Ratio | 31.01% | N/A | N/A |
Source: Business Standard, Economic Times, Moneycontrol
🔍 Q2 FY2025‑26 Analysis
📈 Profit & Total Income
Net profit ₹955.26 Cr, up 10.85% QoQ, down 9.6% YoY.
Total income ₹7,824.30 Cr, up 3.5% YoY.
Net Interest Income (NII) ₹2,495 Cr, highest recorded, +5% YoY.
🏦 Advances & Deposits
Net advances ₹2.45 lakh Cr, +6.2% YoY.
Total deposits ₹2.89 lakh Cr, +7.4% YoY.
CASA ratio stable at 31.01%.
📉 Asset Quality
Gross NPA improved from 2.09% → 1.83%.
Net NPA improved from 0.57% → 0.48%.
Provision coverage ratio (PCR) healthy at 73.45%.
🧭 Management Guidance FY2025‑26
Focus on digital banking & fintech partnerships to enhance efficiency.
Credit growth target ~₹70,000 Cr for H2 FY26 across retail, MSME & agriculture.
Margin recovery expected via deposit repricing & rate pass-through.
Continued emphasis on asset quality improvement and operational efficiency.
✅ Key Takeaways
Net profit ₹955.26 Cr; QoQ growth 10.85%, YoY decline 9.6%.
Advances +6.2% YoY; deposits +7.4%.
Gross NPA 1.83%; Net NPA 0.48%.
NII highest at ₹2,495 Cr; margins under focus.
Management expects H2 FY26 performance to improve with digital adoption and credit expansion.
💼 Conclusion
Federal Bank Q2 FY2025‑26 results indicate stable growth, improved asset quality, and strong NII, despite YoY dip in net profit. Management’s strategic focus on digital banking, credit growth, margin recovery, and asset-quality maintenance could drive better H2 FY26 performance.
Investors should watch for NII recovery, margin expansion, and consistent asset quality in upcoming quarters.
