Federal Bank Q2 Profit Falls 9.6% YoY; Asset Quality Improves

Federal Bank reported a 9.6% YoY drop in Q2 FY26 net profit to ₹955.3 crore, while NII rose 5.4% to a record ₹2,495 crore. GNPA improved to 1.83% and NNPA to 0.48%. Fee income hit an all-time high of ₹886 crore. Deposits grew 7.4% and CASA ratio improved to 31.01%.