Federal Bank (BSE: FEDERALB) delivered a ₹1,386 crore net profit in the September quarter, a 45% rise over ₹955 crore in the same period last year, and its shares surged 3.2% on the day of the release, according to the bank’s filing.
Net interest income climbed 26.4% YoY to ₹3,153.4 crore, propelling the net interest margin (NIM) to 3.32% from 3.06% a year earlier – a 260 basis‑point lift in absolute terms, signalling tighter credit spreads.
Other income also accelerated, rising 37.7% to ₹1,490 crore from ₹1,082 crore, while fresh slippages were modest at ₹420 crore versus ₹409 crore, keeping the gross non‑performing asset profile stable.
The bank reiterated a 5‑6 basis‑point NIM improvement outlook, affirmed its overseas funding window through December, and kept a $500 million medium‑term note programme ready for market entry if conditions improve.
Looking ahead, Federal Bank plans to boost exposure to gold loans, credit cards, loans against property and commercial vehicle finance, and expects these channels to underpin further margin expansion in the next quarter.