Federal Bank has reported a robust performance for the quarter ended December 31, 2025 (Q3 FY26), achieving record Net Interest Income (NII), operating profit, and fee income. The bank's net profit stood at ₹1,041.21 crore, marking a 9% increase quarter-on-quarter (QoQ). NII grew by 9.11% year-on-year (YoY) to ₹2,652.73 crore, with Net Interest Margin (NIM) expanding by 12 basis points (bps) QoQ to 3.18%.

The bank's total business reached ₹5,53,364.49 crore, an 11.40% YoY growth. Advances increased by 10.94% YoY to ₹2,55,568.67 crore, and deposits grew by 11.80% YoY to ₹2,97,795.82 crore. The CASA ratio improved to 32.07%, with CASA balances growing 18.86% YoY. Fee income also saw strong growth, rising 18.57% YoY to ₹896.47 crore.

Asset quality further strengthened, with Gross NPA at 1.72% and Net NPA at 0.42%, reaching decadal lows. The Cost-to-income ratio improved to 53.92%, and ROA stood at 1.15% with ROE at 11.68%. Earnings Per Share (EPS) was ₹16.79, an 8.89% increase QoQ.

Mr. KVS Manian, Managing Director & CEO, commented that the performance reflects the bank's strengthening fundamentals, balance sheet discipline, and execution focus, leading to improved margins, reduced funding costs, and stable asset quality. He highlighted a calibrated shift towards segments delivering superior risk-adjusted returns.

In strategic developments, Federal Bank increased its stake in Ageas Federal Life Insurance Company from 26% to 30% by acquiring 3.2 crore shares at ₹30.45 per share in November 2025. The bank also welcomed a strategic minority investment from Blackstone, which received necessary approvals. Additionally, Federal Bank unveiled a refreshed brand identity, 'The Fortuna Wave'. The bank added six branches during the quarter.