The Federal Bank Limited — PPTs, 16-01-2026: Investor Presentation

Federal Bank reported a strong Q3 FY26, highlighting robust financial and operational performance.

1. **Business Performance:** Net Profit surged 9% QoQ to ₹1,041 Cr. Operating Profit and Fee Income reached highest-ever levels at ₹1,729 Cr and ₹896 Cr respectively. Net Interest Income stood at ₹2,653 Cr. Asset quality notably improved, with Gross NPA at a decadal best of 1.72% and Net NPA at 0.42%. Total deposits rose 3% QoQ to ₹297,796 Cr, while advances grew 4% QoQ to ₹265,722 Cr, supported by healthy 7% QoQ growth in CASA.

2. **Growth Drivers or Strategy:** The bank is actively reshaping its asset portfolio for better yields, accelerating fee income, and strengthening its CASA base. Digital transformation is a key focus, with over 93.8% of transactions now handled digitally through platforms like FedMobile and FedCorp, and new initiatives like BBPS on CBDC.

3. **Recent Developments:** Federal Bank secured a strategic investment of ₹6,197 Cr from Blackstone via convertible warrants, significantly bolstering its capital. The bank also unveiled "The Fortuna Wave," a refreshed brand identity.

4. **Key Financial Metrics:** Return on Assets (ROA) improved to 1.15% and Return on Equity (ROE) to 11.68%. Capital Adequacy Ratio (CRAR) remains strong at 15.20%.

5. **Management Commentary / Outlook:** Management emphasizes sustained operational strength, profitability, and prudent practices, highlighting resilient asset quality and ongoing efforts to expand its green portfolio.