Federal Bank’s shares climbed 0.6% to ₹339 after the institution released its Q2 earnings.
Net interest income rose 26.4% to ₹3,153.4 crore, up from ₹2,495.2 crore a year earlier, driven by higher loan growth and a tighter spread environment.
Asset quality improved, with gross NPA falling to 1.32% from 1.52% and net NPA trimming to 0.17% from 0.18% sequentially, signalling tighter credit underwriting.
Other income surged 37.7% to ₹1,490 crore, up from ₹1,082 crore, while provisions climbed to ₹342 crore from ₹318 crore, yet still lower than last year’s ₹363 crore.
Per the bank’s filing with the NSE, analysts had forecast a net profit of ₹1,200 crore; the actual ₹1,386 crore beat expectations, giving the stock a 1% upside vs the 8% sector average gain in Q2.
The bank has not issued new guidance yet, but it is targeting a 20% rise in operating margin for FY26, with the next earnings call on November 30th.