Earnings Call transcript
FEDERALBNK · price
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Federal Bank reported a record quarterly net profit of INR 1,145 crores for Q4 FY'26, representing 10% sequential growth. The bank achieved major milestones including CASA balances crossing INR 1 lakh crore (INR 1,03,390 crores) and NRE deposits also crossing INR 1 lakh crore (INR 1,02,620 crores). The CASA ratio improved to 32.94%, up 271 basis points year-on-year. Net Interest Income grew 14.2% year-on-year to INR 2,716.66 crores, with NIM expanding to 3.20%. Fee income reached a record INR 990.92 crores, up 24% year-on-year, driven by credit cards, trade/forex, and the newly launched wealth management business. Asset quality remained strong with GNPA at a decade-low of 1.62% and NNPA at 0.37%. The bank added 39 new branches during the quarter and plans to add about 100 branches in FY'27.
The strong operational performance with record profitability, improving margins, and robust asset quality demonstrates effective execution of the bank's strategic shift towards granular retail liabilities and higher-yielding secured assets. Management's confidence in growth acceleration and maintained guidance on credit costs (50-60 bps) and cost-to-income (53-55%) provides visibility on sustained performance.