Federal Bank on Saturday said it has become the sixth-largest private sector lender after its total business reached ₹5.28 lakh crore, registering a growth of 8.5% year-on-year.

Net profit of the bank fell 14.6% year-on-year to ₹861 crore for the quarter ended June. The bank registered an operating profit of ₹1,556.29 crore for the first quarter.

Net Interest Income grew 1.96% year-on-year to ₹2,336.83 crore for the quarter ended on June from ₹2,291.98 crore in the corresponding period a year ago. Total income of the bank for the quarter grew by 7.64% on-year to reach ₹7,799.61 crore. Earnings per share (EPS) annualised stood at ₹14.07 for the quarter. Net interest margin came in at 2.94% in Q1 FY26.

Gross NPA of the bank at the end of Q1 FY26 stood at ₹4,669.66 crore, which as a percentage to Gross Advances stood at 1.91%. The Net NPA and Net NPA as a percentage to Net Advances, as of June 2025 stood at ₹1,157.64 crore and 0.48%, respectively.

Total deposits increased from ₹2.66 lakh crore as on June 2024 to ₹2.87 lakh crore as on June 2025, registering a growth of 8.03%.

On the Asset side, net advances increased from ₹2.20 lakh crore as on June 2024 to ₹2.41 lakh crore as on June 30, 2025, a growth of over 9%. Retail advances grew by 15.64% to reach ₹81,046.54 crore. Business Banking advances grew by 6.29% to reach ₹19,193.95 crore. Commercial Banking advances grew by 30.28 % to ₹25,028 crore. Corporate Advances registered a growth of 4.47% to reach ₹83,680 crore.

Net worth of the Bank increased by 12.19% YoY to ₹33,994.08 crore, as on June 2025. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 16.03% as at the end of the quarter.

“This quarter reaffirmed the strength of our diversified model. Even in a typically soft Q1, we saw momentum in key segments like commercial banking, credit cards, and gold loans. Our mid-yielding engines are firing well too. We delivered a strong operating performance, with improving productivity. Fee income hit a record high, and CASA ratios continued to improve steadily,” said KVS Manian, Managing Director & CEO of Federal Bank.

“On asset quality, while credit costs were elevated this quarter, they were largely driven by slippages in the Agri and MFI portfolios. Based on current trends, we expect these slippages to moderate and stabilise going forward, leading to a normalisation in credit costs. With macro tailwinds building and our strategic themes gaining traction, we’re confident of accelerating growth in the second half while staying disciplined on risk and profitability,” added Manian.