CASA Ratio
32.94%
+87bps QoQ
Improved 271bps YoY; CASA balances crossed ₹1 lakh crore milestone.
FEDERALBNK
Banking
15 Apr 2026
The Federal Bank Ltd — Q4 FY26
Federal Bank delivered a record Q4 FY26 with net profit of ₹1,145 crore (up ~10% QoQ), driven by strong NII growth of 14.2% YoY and record fee income of ₹991 crore (+24% YoY).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Federal Bank delivered a record Q4 FY26 with net profit of ₹1,145 crore (up ~10% QoQ), driven by strong NII growth of 14.2% YoY and record fee income of ₹991 crore (+24% YoY). NIM expanded 2bps QoQ to 3.20%, supported by a 4bps decline in cost of funds to 5.46%. CASA ratio improved 87bps QoQ to 32.94%, with CASA balances crossing ₹1 lakh crore. Asset quality improved to decadal bests: GNPA 1.62%, NNPA 0.37%. ROA reached 1.24% (ex-one-offs), back to pre-rate-cut levels. Management guided for continued NIM expansion, 100 new branches in FY27, and maintained credit cost guidance of 50-60bps. Key risk: escalation of West Asia conflict impacting energy prices and remittance inflows.
Key Numbers
Fee Income
₹991 crore
+24% YoY
Record quarterly fee income driven by cross-sell and product penetration.
Gold Loan Growth
26% YoY
+26% YoY
Robust growth despite downsizing a subsegment for regulatory alignment.
Cost-to-Income Ratio
52.86%
-106bps QoQ
Improved due to operating leverage; management expects range of 53-55%.
Management Guidance
NIM expansion to continue
Management expects further NIM improvement through deposit repricing, liability mix shift, and asset mix optimization.
Management guidance margins100 new branches in FY27
Planned branch expansion of about 100 branches in the next fiscal year, supported by data-driven network strategy.
Management guidance expansionCredit cost guidance maintained at 50-60 bps
Credit cost guidance remains unchanged at 50-60 basis points, though subject to review based on geopolitical clarity.
Management guidance marginsCASA ratio target of 36%
Management reiterated the medium-term target of 36% CASA ratio, achievable given recent strong momentum.
Management guidance growthKey Risks
West Asia conflict escalation
Geopolitical tensions could disrupt energy markets and remittance inflows, impacting deposit stability and asset quality.
high · management_commentaryHome loan pricing pressure
Intense competition in home loans with rates as low as 7.15% vs deposit costs above that, limiting growth in this segment.
medium · analyst_questionECL transition impact uncertainty
Management has not yet assessed the full impact of the new ECL guidelines, creating near-term provisioning uncertainty.
medium · analyst_questionPotential job losses in Middle East
If the West Asia conflict leads to job losses and return of NRIs, remittance inflows and NR deposits could be affected.
medium · management_commentaryNotable Quotes
Our Q4 performance reflects a strong operational quarter with outcomes that are consistent with the direction we have articulated throughout the year.
We have consciously reduced our reliance on high-value deposits which has contributed to a more stable and cost-efficient funding base.
Both on NIM as well as on ROA, we are back to our pre-rate cut cycle levels. And those were at the peak of the cycle and what we have now are at the bottom of the cycle.
Frequently Asked Questions
What was Federal Bank's revenue in Q4 FY26?
Federal Bank reported revenue of ₹2,717 Cr in Q4 FY26, representing a +14.2% change compared to the same quarter last year.
What guidance did Federal Bank management give for FY27?
NIM expansion to continue: Management expects further NIM improvement through deposit repricing, liability mix shift, and asset mix optimization. 100 new branches in FY27: Planned branch expansion of about 100 branches in the next fiscal year, supported by data-driven network strategy. Credit cost guidance maintained at 50-60 bps: Credit cost guidance remains unchanged at 50-60 basis points, though subject to review based on geopolitical clarity. CASA ratio target of 36%: Management reiterated the medium-term target of 36% CASA ratio, achievable given recent strong momentum.
What are the key risks for Federal Bank in FY27?
Key risks include West Asia conflict escalation — Geopolitical tensions could disrupt energy markets and remittance inflows, impacting deposit stability and asset quality.; Home loan pricing pressure — Intense competition in home loans with rates as low as 7.15% vs deposit costs above that, limiting growth in this segment.; ECL transition impact uncertainty — Management has not yet assessed the full impact of the new ECL guidelines, creating near-term provisioning uncertainty.; Potential job losses in Middle East — If the West Asia conflict leads to job losses and return of NRIs, remittance inflows and NR deposits could be affected..
Did Federal Bank meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Federal Bank Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.