Federal Bank reports ₹861.75 crore net profit in Q1 FY26

MUMBAI - The Federal Bank Ltd reported a standalone net profit of ₹861.75 crore for the first quarter ended June 30, 2025, according to its unaudited financial results approved by the bank’s board of directors on August 2.

The private sector lender’s profit declined by 14.6% compared to ₹1,009.53 crore recorded in the same quarter of the previous fiscal year. Total income for the quarter rose to ₹7,799.61 crore from ₹7,246.06 crore in the corresponding period last year, representing a 7.6% increase.

The bank’s interest income grew to ₹6,686.63 crore in Q1 FY26 from ₹6,330.88 crore a year ago, while other income increased to ₹1,112.98 crore from ₹915.18 crore in the same period.

On the asset quality front, Federal Bank reported improvement with gross non-performing assets (NPAs) at 1.91% of gross advances as of June 30, 2025, compared to 2.11% a year ago. Net NPAs also improved to 0.48% from 0.60% in the year-ago period.

The bank maintained a strong capital adequacy ratio of 16.03% under Basel III norms, compared to 15.57% in the same quarter last year.

Operating profit before provisions and contingencies stood at ₹1,556.29 crore for the quarter, slightly higher than ₹1,500.91 crore in the corresponding period of the previous year.

On a consolidated basis, which includes its subsidiaries Fedbank Financial Services Limited and Federal Operations and Services Limited, along with its associate Ageas Federal Life Insurance Company Limited, the bank reported a net profit of ₹918.32 crore for the quarter.

The financial results were subjected to limited review by the bank’s joint statutory auditors, who issued an unmodified review report, according to the press release statement.

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