Federal Bank reported a strong operational quarter for the period ended 31 March 2026, with net profit of Rs 12,591.0 million for the quarter and Rs 41,173.2 million for the year.

The bank said margin expansion, a rise in fee income and improving asset quality underpinned results and drove sequential growth.

The managing director and chief executive noted that liability restructuring towards retail deposits and the launch of an in-house wealth platform were central to the quarter's performance.

Non-resident deposits crossed the Rs 1,026.197 billion mark while CASA balances exceeded Rs 1,033.903 billion, establishing concurrent milestones for the funding franchise.

The CASA ratio improved to 32.94 per cent, up 271 basis points year on year, and the bank reported deliberate optimisation of high-value deposits to lower cost of funds to 5.46 per cent.

Fee income rose to Rs 9,909.2 million and contributed materially to core earnings.

Total business reached Rs 5,785.038 billion and total deposits stood at Rs 3,139.094 billion, driven by resident and non-resident inflows and a shift towards retail liabilities.

Gross advances rose to Rs 2,683.690 billion, with commercial and retail segments reporting the largest traction, and operating efficiency improved as cost-to-income fell to 47.28 per cent.

Provision coverage excluding technical write-offs strengthened to 87.07 per cent, supporting balance sheet resilience.

Asset quality was reported at decade lows with gross non-performing assets at 1.62 per cent and net non-performing assets at 0.20 per cent, reflecting selected segment focus and risk controls.

Return metrics were restored with return on assets at 1.36 per cent, net interest margin at 3.74 per cent and return on equity at 13.69 per cent.

The bank also said it added 39 new branches during the quarter and will continue a data driven network expansion to support growth.