Federal Bank announced a significant year-on-year increase in net profit by 37%, reaching ₹1,177 crore for the quarter covering April-June 2027 (Q1FY27). This growth was driven by a steady increase in Net Interest Income (NII), an expansion in Net Interest Margin (NIM), and a reduction in new write-offs.
However, looking at sequential data, net profit decreased by 7%. Nevertheless, excluding the one-time income received in March, the bank stated that this is its highest quarterly profit in history. Net Interest Income (NII) increased by 26% year-over-year to ₹2,946 crore, supported by healthy credit growth and margin expansion.
The bank's Net Interest Margin (NIM) grew by 39 basis points (bps) year-on-year to 3.33%, as the cost of funding fell faster than asset yields. The cost of funding decreased by 60 bps, while asset yield contracted by 44 bps. The cost of deposits dropped by 57 bps year-on-year to 5.21%. Other income declined by 6% year-on-year and by 8% compared to the previous quarter, amounting to ₹1,048 crore.
Asset quality improved during the reporting period. Gross Non-Performing Assets (GNPAs) reduced to 1.52% of gross loans as of the end of June, compared to 1.62% at the end of March. Net NPAs almost halved, reaching 0.18%, which is the lowest figure in the bank's recent history. New write-offs slowed to ₹409 crore in the quarter compared to ₹474 crore in Q4FY26 and ₹658 crore a year earlier. Provisions increased by 4% year-on-year to ₹720 crore but decreased by 29% sequentially.
In the business segment, gross loans grew by nearly 15% year-on-year to ₹2.81 trillion. The growth was supported by commercial banking (23%), gold loans (33%), real estate mortgage loans (21%), credit cards (36%), and financing for commercial transport and construction equipment (21%). The bank's corporate and institutional banking portfolio exceeded ₹1 trillion during the quarter, with total business volume reaching nearly ₹6 trillion.
Total deposits rose to ₹3.20 trillion. CASA deposits increased by 18.3% year-on-year to ₹1.03 trillion, outpacing overall deposit growth and raising the CASA ratio by 188 bps to 32.23%. The bank's franchise for Non-Resident (NR) deposits also remained strong: NRE and ONR deposits grew by 14.2% year-on-year to ₹1.05 trillion, continuing to grow after crossing the ₹1 trillion mark in the previous quarter.
Mr. Manian, Managing Director and CEO of Federal Bank, noted that the profit grew by almost 37% during a period when the treasury faced a challenging quarter, indicating that income is being generated by core business rather than market acquisitions. He emphasized that the 26% rise in NII alongside a 15% growth in loans reflects the bank's focus on margin expansion.
Manian also stated that the Net NPA ratio of 0.18% is the lowest in the bank's recent history, and the provisioning coverage ratio stands at 87%. He added that the bank is building a sustainable balance through reduced credit costs and a strong income buffer. Management noted that the selected lending segments continue to perform well, and the CASA and non-resident deposit franchises are deepening, placing the bank in a favorable position for the remainder of the fiscal year due to strong capital, improved asset quality, and a healthy business momentum.
ICICI Prudential Asset Management Company (AMC) announced a 23% increase in its profit after tax (PAT) compared to the previous year, reaching ₹964.63 crore for the quarter ending June 30, 2026. This growth was attributed to increased revenues, according to an official company statement published on Monday.
In the corresponding quarter of the last fiscal year, the company recorded a PAT of ₹783.64 crore. For the quarter from April to June, total revenue grew by 18.1%, amounting to ₹1,745.02 crore compared to ₹1,477.52 crore the previous year. Meanwhile, operating income increased by 17.6% to ₹1,564.22 crore, while total expenses amounted to ₹464.37 crore, which is 11.7% higher than in the same period last year.
Profit before tax showed a growth of 20.6%, reaching ₹1,280.65 crore, up from ₹1,061.96 crore the previous year. Operating profit before tax increased by 20.2% year-on-year, totaling ₹1,099.85 crore.
According to the investor presentation, the average assets under management (QAAUM) for mutual funds as of June 2026 reached ₹11.17 lakh crore, securing a market share of 13.4%. Active mutual funds had a QAAUM of ₹9.25 trillion, and equity QAAUM stood at ₹6.31 lakh crore.
Furthermore, the company reported that its unique client base expanded to 17.3 million as of June 30, 2026, up from 15.1 million the previous year. The company also serves over 116,000 distribution partners and operates 286 offices.
During the quarter, the company paid a final dividend of ₹12.40 per share for the financial year ending March 31, 2026, following approval by shareholders at the annual general meeting held last month. Shares of ICICI Prudential Asset Management Company closed on BSE 1.56% higher, at a price of ₹3,209.55 per share.
The public sector bank Indian Bank, based in Chennai, announced a 10% increase in net profit for the first quarter of the current fiscal year, reaching INR 3,273 crore. In the same quarter of the previous fiscal year, the profit was INR 2,973 crore.
According to the report submitted to the regulator, the bank's total income for the June quarter of 2026-27 increased to INR 20,724 crore compared to INR 18,721 crore in the corresponding period of FY 26. Interest income also improved, amounting to INR 18,090 crore versus INR 16,283 crore a year earlier.
Net Interest Income (NII) grew by 17%, reaching INR 7,435 crore compared to INR 6,359 crore in the June quarter of FY 26. Furthermore, the bank's operating profit rose to INR 5,557 crore from INR 4,770 crore recorded in the same quarter last year.
The bank demonstrated an improvement in asset quality: Gross Non-Performing Assets (NPA) decreased to 1.86% of total loans by the end of June, down from 3.01% a year earlier. Similarly, Net NPAs, or bad loans, reduced to 0.15% compared to 0.18% in the previous year.
As a result of these changes, provisions for bad loans were reduced to INR 376 crore in the first quarter, down from INR 387 crore a year ago. The Provision Coverage Ratio (PCR) remained unchanged at 98.2% during the quarter.
The Return on Assets (ROA) improved to 1.34% for June 2026, whereas it was 1.03% in June 2025. Meanwhile, the bank's capital adequacy ratio decreased to 17.80% from 17.99% in the same quarter of FY 26.
