Federal Bank's Q2 profit declines 9.6% YoY to ₹955cr
What's the story
Federal Bank has reported a 9.6% year-on-year decline in its standalone net profit for the second quarter of FY26. The bank's net profit stood at ₹955.3 crore, down from ₹1,057 crore in the same period last year. The bank's total income for the fiscal second quarter rose 3.8% to ₹7,824.3 crore compared to ₹7,548 crore in the same period last year.
Financial metrics
NII grew by over 5% YoY
Federal Bank's Net Interest Income (NII), a key profitability metric, grew 5.4% YoY to ₹2,495.2 crore from ₹2,367.3 crore in the same quarter last year. The bank also witnessed an improvement in its asset quality with Gross Non-Performing Assets (NPA) declining to 1.83% from 1.91% in the previous quarter, and the absolute number falling to ₹4,532 crore from ₹4,669.7 crore earlier.
Market performance
Provisions for the quarter stood at ₹363cr
Federal Bank's provisions for the quarter stood at ₹363 crore, down from ₹400 crore QoQ but much higher than ₹158 crore in the same period last year. This reduction in provisioning on a sequential basis suggests improved credit quality and better recovery trends.