The Federal Bank Limited has informed the Exchange about Investor Presentation
FEDERALBNK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Federal Bank filed its Q1 FY26 investor presentation alongside the unaudited results. Net profit fell 15% year-on-year to ₹862 crore, with ROA declining to 1.00% and ROE to 10.30%, both lower than the previous quarter. Net Interest Margin compressed to 2.94% from 3.16% a year ago, and the bank explicitly stated that profitability softened due to segment-specific provisioning in its microfinance (MFI) book. Asset quality showed strain — slippage ratio jumped to 1.11% from 0.78% YoY, and GNPA rose to 1.91%, driven largely by elevated MFI slippages. On the positive side, total business crossed ₹5.29 lakh crore (6th largest private bank), deposits grew 9% YoY, advances rose 8% YoY, core fee income jumped 20% YoY, and other income hit a record ₹1,113 crore. The bank remained well-capitalized with CRAR of 16.03%.
Investors should expect near-term pressure on the stock given declining margins, weaker return ratios, and rising slippages concentrated in the MFI segment. However, strong fee income growth, healthy deposit mobilization, and adequate capital buffers provide some support for medium-term confidence.