Federal Bank posts Rs 1,041 crore Q3 profit, asset quality improves

New Delhi (PTI): Private sector lender Federal Bank on Friday reported an 8.98 per cent improvement in net profit at Rs 1,041 crore in the third quarter ended December 2025.

The bank had earned a net profit of Rs 955 crore in the same quarter a year ago.

Total income increased to Rs 7,968 crore during the reporting quarter from Rs 7,725 crore in the same period a year ago, Federal Bank said in a regulatory filing.

Interest income also rose to Rs 6,867 crore during the quarter under review as compared to Rs 6,809 crore in the year-ago period.

Operating profit of the bank grew to Rs 1,729 crore compared to Rs 1,559 crore in the third quarter of the previous fiscal.

On the asset quality front, the bank's gross non-performing assets ratio improved to 1.72 per cent as against 1.95 per cent a year ago.

Similarly, net NPAs, or bad loans, came down to 0.42 per cent from 0.49 per cent at the end of the third quarter last fiscal year.

However, the overall provisions, excluding tax, increased to Rs 332 crore during the quarter from Rs 292 crore a year ago.

Capital Adequacy Ratio marginally rose to 15.2 per cent from 15.16 per cent at the end of the third quarter of the previous financial year.

During the quarter, the bank added 6 branches, in line with its calibrated and market-focused expansion strategy.

Federal Bank increased its stake in Ageas Federal Life Insurance Company from 26 per cent to 30 per cent through the acquisition of 3.2 crore shares at Rs 30.45 per share, it said.

The transaction, completed in November 2025, received all requisite approvals from the RBI and IRDAI, further strengthening the bank's strategic partnership in the life insurance business, it added.