Federal Bank delivered robust FY results for the Q2 of FY27

Federal Bank delivered robust financial results for the second quarter of FY27, marked by significant profitability growth, margin expansion, and a strengthening balance sheet. The performance underscores strong fundamental execution and healthy credit ***** and Margin ExpansionNet Profit: Surged 45.1% year-over-year (YoY) to ₹1,386 crore, up from ₹955 crore. Net Interest Income (NII): Expanded 26.4% YoY to ₹3,153.4 crore, compared to ₹2,495.2 crore in the prior year. Net Interest Margin (NIM): Improved by 26 basis points YoY to reach 3.32%, up from 3.06%.Other Income: Jumped 37.7% YoY to ₹1,490 crore, serving as a material driver for overall ***** on Assets (ROA): Increased to 1.32%, up from 1.09% in the year-ago ***** QualityNon-Performing Assets (NPAs): Gross NPA contracted sequentially to 1.32% from 1.52%, while Net NPA improved to 0.17% from 0.18%.Slippages and Provisions: Fresh slippages remained stable at ₹420 crore, compared to ₹409 crore in the previous quarter. Provisions totaled ₹342 crore, representing a sequential increase but a YoY decline from ₹363 ***** Sheet GrowthAdvances and Deposits: Net advances climbed 22% YoY to ₹2.98 lakh crore. Total deposits grew 19% YoY to ₹3.42 lakh ***** Ratio: The Current Account Savings Account (CASA) ratio strengthened to 32.04%, up from 31.01% last year, indicating an improved low-cost deposit ***** the earnings announcement, Federal Bank shares gained 0.6% to trade at ₹339. The stock has appreciated 26% year-to-date, reflecting continued investor confidence in the bank's operational trajectory.