Federal Bank Posts Record Q3 Performance, Shares Hit 52-Week High

Federal Bank delivered a stellar Q3FY26 performance, reporting net profit of ₹1,041.21 crore (+9% QoQ), net interest income of ₹2,652.73 crore, and NIM expansion to 3.18% (up 12 bps QoQ), driven by lower funding costs and improved liability mix. The bank’s CASA ratio rose to 32.07%, with deposits growing 11.8% YoY to ₹2.98 trillion, while advances reached ₹2.56 lakh crore. Asset quality touched a decade-low: Gross NPA at 1.72% and Net NPA at 0.42%, with provision coverage at 75.14%. Operating leverage improved as the cost-to-income ratio fell to 53.92%. The strong fundamentals triggered investor confidence, sending shares up 11.6% to ₹273, a fresh 52-week high. The bank also increased its stake in Ageas Federal Life Insurance to 30%, signaling long-term strategic commitment. With sustained margin growth, disciplined cost management, and robust asset quality, Federal Bank has reinforced its position as a high-performing private sector lender.