FEDERALBNK

Federal Bank shares surged nearly 7% on Friday after the private sector lender reported strong financial results for the quarter ended June 2026, driven by robust growth in net interest income (NII), lower provisions, and improved asset quality. The stock closed at ₹348 on the NSE, up 6.55% from its previous close of ₹326.60. For the June quarter, Federal Bank posted a net profit of ₹1,177 crore, marking a 36.6% year-on-year increase from ₹862 crore in the same period last year. However, the profit was marginally below the Bloomberg consensus estimate of ₹1,186 crore. The bank's net interest income grew 26.1% year-on-year to ₹2,946 crore, compared with ₹2,337 crore a year ago, comfortably beating analysts' estimate of ₹2,851 crore. Provisions declined to ₹317 crore from ₹400 crore in the corresponding quarter last year, reflecting improved credit quality. Meanwhile, tax expenses rose to ₹402.7 crore from ₹294.4 crore. Federal Bank also reported better asset quality during the quarter. Its Gross Non-Performing Asset (GNPA) ratio improved to 1.52% from 1.62% in the March quarter, while the Net Non-Performing Asset (NNPA) ratio declined to 0.18% from 0.20% sequentially. The strong operational performance and improvement in key financial metrics boosted investor sentiment, leading to a sharp rise in the bank's share price.