Federal Bank Posts Record Fee Income Despite 15% YoY Profit Decline in Q1 FY26

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reported mixed Q1 FY26 results, achieving record fee income of ₹786.49 crore (20% YoY growth) and total business crossing ₹5.29 lakh crore. Other income stood at ₹1,113 crore. Despite these highs, net profit dropped 15% YoY to ₹862 crore. ROA was 1.00%, ROE 10.30%, NIM 2.94%, and CRAR 16.03%. Deposits grew 10% YoY to ₹2.87 lakh crore, while advances rose 9% to ₹2.45 lakh crore. Asset quality showed some pressure with gross NPA at 1.91% and net NPA at 0.48%, largely due to elevated slippages in microfinance. Digital adoption remained strong, with 93% of transactions processed digitally.