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Federal Bank shares hit a life-high on January 16 after the lender's shares locked in the upper circuit following strong third-quarter results for FY26.
The bank reported healthy growth in profitability along with improvement in asset quality, boosting investor sentiment and triggering sharp buying interest across the counter.
Federal Bank Stock Performance
The company's share price spiked 13 per cent to hit an intraday high of Rs 278.40 apiece, and it pared gains to trade 10 per cent higher as of 01:42 PM
Federal Bank carries a total market capitalisation of nearly Rs 66,829.38 crore, with a free‑float market cap of nearly Rs 66,581.62 crore, while its one‑year price range spans from a low of Rs 234 to a high of Rs 283
The stock's Relative Strength Index was 86. Notably, an RSI above 70 indicates that the stock is overbought, and below 30 indicates the stock is oversold. Meanwhile, 30 to 70 indicates a neutral zone, with 50 often indicating no strong trend.
Federal Bank Q3 Result
Federal Bank delivered a stable performance in Q3FY26, with net profit rising 8.9 per cent year‑on‑year to Rs 1,041.2 crore, compared to Rs 955.4 crore in the same quarter last year.
The bank also recorded a 9.1 per cent YoY growth in net interest income, which came in at Rs 2,652.7 crore, reflecting steady loan growth and improved operational efficiency.
Asset quality showed meaningful improvement during the quarter. The bank’s gross non‑performing asset ratio fell to 1.72 per cent, down from 1.83 per cent in the previous quarter, while the net NPA ratio eased to 0.42 per cent from 0.48 per cent in Q2FY26.
Provisions also moderated sequentially, declining to Rs 332.4 crore versus Rs 363 crore in the previous quarter.
The bank further informed that funding costs declined in the current quarter, with the cost of deposits at 5.48 per cent and overall cost of funds at 5.50 per cent.
Meanwhile, the bank's total business stood at Rs 5.5 lakh crore, registering 3.71 per cent QoQ and 11.40 per cent YoY growth.
The bank's advances rose to Rs 2.5 lakh crore, up 4.46 per cent QoQ and 10.94 per cent YoY, led by Commercial Banking and Corporate & Institutional Banking.
Moreover, the bank's deposits increased to Rs 2 lakh crore, growing 3.07 per cent QoQ and 11.80 per cent YoY.
Another key metric, Current Account Savings Account ratio improved to 32.07 per cent, up 106 bps QoQ and 191 bps YoY. And, CASA balances grew 18.86 per cent YoY.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
