Q2 2026 Federal Bank Ltd Earnings Call Transcript

Oct 18, 2025 / 07:00 AM GMT

Transcript

Key Points

Positve

The Federal Bank Ltd (BOM:500469) reported a significant improvement in its CASA ratio, with an increase of over 120 basis points year-on-year and over 100 basis points quarter-on-quarter.
The bank's remittance market share increased from 18.5% to 21%, indicating renewed momentum in this segment.
Fee income grew by 13% quarter-over-quarter, demonstrating resilience despite muted treasury income due to market movements.
The bank's credit cost moderated to 50 basis points this quarter, aligning with their full-year guidance of 55 basis points.
The Federal Bank Ltd (BOM:500469) has successfully launched new business initiatives, such as the pilot launch of its tractor business and expansion in gold loans, which grew by 7% quarter-on-quarter.

Negative

Overall deposit growth appeared moderate as the bank deliberately rationalized wholesale and financial sector deposits.
The bank's growth in low-yield assets, such as corporate and home loans, remains a challenge, with these segments still constituting a significant portion of the loan book.
The MFI segment continues to experience stress, with slippages not yet at a comfortable level, impacting overall asset quality.
The bank's growth rate was lower than expected, with a 1.5% quarter-over-quarter increase, which is below the system's average.
There is uncertainty regarding the potential impact of new ECL guidelines and capital raise plans, which may affect future financial performance.

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

FED.NS - Federal Bank Ltd
Q2 2026 Federal Bank Ltd Earnings Call
Oct 18, 2025 / 07:00AM 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 the Federal Bank Limited Q2 F 526 earnings conference call. 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 the conference call, please signal an operator by pressing start then 0 on your touchstone phone. Please note that this conference is being recorded. I now have the conference over to Mr. Shavik Roy, head in 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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