What was filed
Federal Bank released its press release on unaudited financial results for the quarter and half year ended 30 September 2026, filed under Regulation 30 of SEBI's LODR regulations. The bank described the quarter's net profit as the highest in its history and its asset-quality metrics as decadal lows. A separate investor presentation is being placed on the bank's website.
The core franchise did the work
The bank attributes the earnings growth to its core business rather than one-off items. Net interest income grew faster than advances, net interest margin expanded, and both cost of funds and cost of deposits declined year-on-year. Fee income reached an all-time high, and the bank noted fee income relative to average earning assets is at a record level. The cost-to-income ratio fell nearly two percentage points. The bank also flagged two scale milestones: total business above ₹6.4 lakh crore and gross advances past ₹3 lakh crore.
Asset quality and capital
The filing reports gross and net NPA ratios at decadal lows, with provision coverage (excluding technical write-offs) strengthening materially year-on-year. Fresh slippages declined and the slippage ratio improved versus a year ago, while the restructured book was reduced to 0.46% of gross advances. On capital, the bank cited a CRAR of 16.84% and Tier I of 15.76%, both higher year-on-year. MD & CEO KVS Manian said the growth is 'coming from the core' and that the bank enters the second half with a strong capital position and a granular balance sheet.