Q4 2026 Federal Bank Ltd Earnings Call Transcript
Key Points
- The Federal Bank Ltd (BOM:500469) achieved a record quarterly net profit of INR 1,145 crore, marking nearly 10% sequential growth.
- CASA balances crossed the INR 100,000 crore mark, growing 8.26% sequentially and nearly 21% year-over-year, indicating strong deposit growth.
- The bank's NRI deposits have crossed INR 100,000 crore, showcasing a robust 13.2% year-over-year increase.
- Asset quality metrics are strong, with GNPA and NNPA at decadal lows of 1.62% and 0.37%, respectively.
- The bank's Cost-to-Income ratio improved to 52.86%, reflecting enhanced operational efficiency and disciplined cost management.
- Loan and deposit growth have been below the system average due to balance sheet realignment.
- Staff expenses declined by about 9% sequentially, attributed to lower retiral provisions, which may not be sustainable.
- The bank's exposure to geopolitical risks, such as the West Asia conflict, could introduce volatility and uncertainty.
- The bank's credit cost guidance remains at 50 to 60 basis points, with potential risks from external uncertainties.
- The bank's LCR has fallen below 120%, indicating a decline in liquidity coverage ratio, which could impact future growth.
Ladies and gentlemen, good day and welcome to the Q4 FY 2026 conference call hosted by Federal Bank. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Souvik Roy, Head, Investor Relations, The Federal Bank Limited. Thank you, and over to you, sir.
Thank you so much. Good evening and a very warm welcome to everyone on the call. Thank you for taking time to join us today and for your continued engagement with the bank. We definitely value these interactions and look forward to sharing our annual performance as well, along with, of course, our outlook for the year. We'll share with the opening remarks from our MD and our ED will walk you through the key highlights of the year with the strategic priorities going forward. This will be, of course, followed by a detailed Q&A like we always do.
With that, over to you, sir.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
