Federal Financial institution on Saturday reported a 9.5 per cent year-on-year (YoY) decline in its internet revenue for the July–September quarter of 2025–26 (Q2 FY26) to Rs 955 crore, at the same time as its complete revenue and deposits grew steadily. The lender mentioned the dip in revenue was as a result of greater bills, although sequential efficiency improved on the again of stronger revenue progress.
The non-public sector lender had posted a internet revenue of Rs 1,056.6 crore in the identical quarter a yr in the past. Nevertheless, in contrast with the earlier quarter, the financial institution’s revenue rose greater than 10 per cent from Rs 861.75 crore, indicating sequential enchancment.
Whole revenue rose 3.5 per cent YoY to Rs 7,824.3 crore from Rs 7,541.23 crore in Q2 FY25. Web curiosity revenue stood at Rs 2,495 crore, whereas working revenue got here in at Rs 1,644.17 crore.
In keeping with the financial institution’s alternate submitting, complete expenditure for the quarter elevated to Rs 6,180 crore from Rs 5,975.87 crore a yr in the past, up 3 per cent YoY.
Deposits and advances keep regular progress
Federal Financial institution’s complete deposits rose 7.3 per cent to Rs 2,88,919.58 crore as of September 30, in contrast with Rs 2,69,106.59 crore a yr earlier. Web advances grew 6.23 per cent to Rs 2,44,657.06 crore, supported by sustained retail and SME lending.
The financial institution’s complete enterprise touched Rs 5,33,576.64 crore on the finish of the quarter, reflecting a 6.84 per cent annual progress.
Managing Director and Chief Government Officer KVS Manian mentioned the financial institution’s efficiency displays the progress of its strategic realignment efforts.
“Having spent over a yr on this function, I’ve a deep sense of conviction about the place the Financial institution stands at the moment and the course we’re headed. Over the previous few quarters, we have undertaken a number of strategic reorientations to strengthen our basis and construct for the longer term and the outcomes are starting to point out,Manian mentioned. He added that the financial institution’s CASA (present account and financial savings account) franchise continues to develop meaningfully, supported by buyer belief and constant execution. “We’re additionally broadening our asset combine thoughtfully, rising the share of our mid-yield portfolio in a measured and disciplined means,” he famous.
