Q1 2026 Federal Bank Ltd Earnings Call Transcript

Aug 2, 2025 / 12:00 PM GMT

Transcript

Key Points

Positve

The Federal Bank Ltd (BOM:500469) reported strong operational performance in Q1, becoming the 6th largest private sector bank by total business.
Gross advances grew by 9.15% year-on-year and 3% sequentially, driven by commercial banking, credit cards, and gold loans.
The bank's net interest income for the quarter stood at 2,337 crore, with a net interest margin of 2.94%, despite a 100 basis point rate cut impact.
Non-interest income reached its highest ever at 1,113 crore, with core fee income growing by 20% year-on-year.
The bank has implemented strategic initiatives under Federal 4.0, focusing on improving CASA, fee income, and asset mix, with significant progress reported in these areas.

Negative

The bank experienced stress in its microfinance and agri segments, with slippages peaking in May and impacting asset quality.
Credit costs are expected to remain high in the second quarter before potentially moderating.
The bank's net interest margin faced pressure due to faster repricing of loans following rate cuts.
There is increased competition in the market, particularly affecting pricing and growth in business banking.
The bank's asset quality in certain segments, such as business banking and commercial vehicle loans, showed marginal deterioration.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FED.NS - Federal Bank Ltd
Q1 2026 Federal Bank Ltd Earnings Call
Aug 02, 2025 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, Good day and welcome to Q1 FI 26 earnings conference call off at the Federal Bank Limited.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference call, please signal an operator by pressing, then 0 on a touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mr. Sovik Roy, head investor relations, the Federal Bank Limited.

Thank you and over to you, Mr. Roy.

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Unidentified_2 [2]

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