Federal Bank Ltd.Record Profit & Robust CASA Growth

Federal Bank delivered a record quarterly net profit of ₹1,145 crore in Q4 FY26, marking nearly 10% quarter-on-quarter growth through deliberate strategic execution.

The bank achieved multiple milestones, with both CASA and NRE deposits crossing the ₹1 lakh crore mark, growing 21% and 13.2% year-on-year respectively. CASA ratio improved significantly to 32.94%, among the industry's best, up 271 basis points annually. Net interest margin expanded to 3.20%, returning to pre-rate cut levels despite being at the cycle bottom, supported by ongoing deposit repricing and favorable mix shifts.

Asset quality reached decade-best levels with GNPA at 1.62% and NNPA at 0.37%. Fee income hit a record ₹991 crore, up 24% annually, driven by credit cards, newly launched wealth management, and trade services. Return on assets improved to 1.24% from 1% in Q1, while return on equity strengthened to 12.47%. Management expressed confidence in sustaining momentum through multiple levers including CASA expansion toward 36% target, accelerating LAP growth, and fee income diversification across emerging verticals.