Federal Bank Share Price Gains Over 8%; Reports Record Q3FY26 Performance with Highest Ever NII

Federal Bank has announced a remarkable performance for the quarter ending December 31, 2025, with record highs in net interest income (NII), operating profit, and fee income. The bank's strategic focus on a stable, margin-led franchise has yielded significant results. 

Federal Bank Q3 FY26 Earnings Results 

The bank reported a net profit of ₹1,041.21 crore, marking a 9% increase quarter-on-quarter (QoQ). NII rose to ₹2,652.73 crore, reflecting a 6.31% QoQ and 9.11% year-on-year (YoY) growth. The net interest margin (NIM) expanded by 12 basis points QoQ to 3.18%, driven by improved liability mix and asset repricing. 

Federal Bank's total business reached ₹5,53,364.49 crore, showing a 3.71% QoQ and 11.40% YoY growth. Advances increased to ₹2,55,568.67 crore, while deposits rose to ₹2,97,795.82 crore. The CASA ratio improved to 32.07%, with CASA balances growing 18.86% YoY. 

Asset Quality and Operational Efficiency 

The bank's asset quality strengthened, with gross non-performing assets (GNPA) at 1.72% and net non-performing assets (NNPA) at 0.42%. The provision coverage ratio (excluding technical write-offs) improved to 75.14%. The cost-to-income ratio improved to 53.92%, reflecting enhanced operational efficiency. 

Read More: India Will Continue to Attract Overseas Investments Due to Strong Growth: RBI Governor! 

Strategic Developments and Brand Refresh 

Federal Bank increased its stake in Ageas Federal Life Insurance Company from 26% to 30%, acquiring 3.2 crore shares at ₹30.45 per share. This transaction, completed in November 2025, strengthens the bank's strategic partnership in the life insurance sector. 

The bank also unveiled a refreshed brand identity, "The Fortuna Wave," to align with its evolution into a contemporary and future-ready institution. Additionally, a strategic minority investment from Blackstone has been approved, reflecting confidence in the bank's strategy and governance. 

Federal Bank Share Price Performance 

As of January 16, 2026, at 12:45 PM, Federal Bank share price on NSE was trading at ₹268.35 up by 8.71% from the previous closing price. 

Conclusion 

Federal Bank's record Q3 performance, marked by high NII and operating profit, underscores its strategic focus on margin-led growth and asset quality improvement. The bank's efforts in cost management and strategic investments further bolster its position in the financial sector. 

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