Profit before tax (PBT) climbed 36.63% YoY to Rs 1,579.62 crore in Q1 FY27.

In Q1 FY27, net interest income (NII) grew 26.06% YoY to Rs 2,945.89 crore, while the net interest margin (NIM) expanded by 39 basis points to 3.33%.

The bank's total business increased 13.05% YoY to Rs 5,97,615.83 crore in Q1 FY27, nearing the Rs 6 lakh crore milestone. During the quarter, total deposits rose 11.37% YoY to Rs 3,20,117.66 crore, while gross advances climbed 14.94% YoY to Rs 2,81,239.54 crore.

Non-Resident (NR) deposits, comprising NRE and ONR deposits, stood at Rs 1,05,123.41 crore in Q1 FY27, registering a 14.24% YoY growth.

During the quarter, CASA balances increased 18.26% YoY to Rs 1,03,163.15 crore, outpacing overall deposit growth. Consequently, the CASA ratio improved by 188 basis points YoY to 32.23% in Q1 FY27.

On the asset quality front, the gross NPA ratio improved to 1.52% as of 30 June 2026, compared with 1.62% as of 31 March 2026 and 1.91% as of 30 June 2025. The net NPA ratio also improved to 0.18%, from 0.20% as of 31 March 2026 and 0.48% as of 30 June 2025.

The provision coverage ratio (excluding technical write-offs) strengthened to 87.37%, up 1,296 basis points YoY, while credit cost declined to 0.41%. Including technical write-offs, the provision coverage ratio stood at 94.23% in Q1 FY27.

During the quarter, the bank added 10 new branches, taking its total network to 1,650 outlets.

KVS Manian, managing director & CEO, said: “This quarter demonstrates something important about the franchise we have been building. Our profit grew nearly 37% in a period when treasury had a challenging period, which tells you that the earnings are coming from the core business, not from market gains. Net interest income growing 26% against advances growth of 15% represents the expansion in our NIMs, which has been a core focus for the bank.

Our net NPA at 0.18% is the lowest in the Bank's recent history, and simultaneously and provision coverage ratio stands at 87%. We are building a resilient balance sheet through a combination of lower credit cost and a strong buffer out of our current earnings.

Our chosen advance segments are delivering as intended, and the NR and CASA franchises continue to deepen. We enter the rest of the year with our capital position strong, our asset quality at its decadal best, and good momentum in our core business.”

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking, and other banking operations. As of 30th June 2026, it had 1,650 banking outlets and 2,135 ATMs/recyclers, including mobile ATMs.