Federal Bank share price popped 13% to ₹278.40 apiece during the second-half trading session of Friday, January 16, as investors appeared impressed by the company’s financial performance for the December-ending quarter.
Its net profit during the reporting quarter stood at ₹1,041.21 crore, up 9% YoY, supported by stronger core income and operating leverage.
The net interest income (NII), which represents the difference between the interest earned from loans and the interest paid to depositors, stood at ₹881 crore in Q3, up from ₹869 crore in the corresponding quarter of the previous year.
The Net Interest Margin (NIM) expanded 12 bps QoQ to 3.18%, supported by improvements in liability mix and asset repricing. On the operating front, the bank’s pre-provision operating profit rose to ₹1,729 crore from ₹1,559 crore year-on-year, marking a growth of 10.2% YoY.
In terms of asset quality, the bank’s gross non-performing assets (NPAs) declined by 23 basis points year-on-year to 1.72%, while net NPAs fell by 7 basis points year-on-year to 0.42%, both declining to decadal lows.
However, overall provisions, excluding tax, increased to ₹332 crore during the quarter from ₹292 crore a year ago. Slippages at the end of the December quarter improved to ₹443 crore from ₹584 crore during the second quarter last year.
During the quarter, the bank added six branches, in line with its calibrated and market-focused expansion strategy.
Meanwhile, the bank also said it has increased its stake in Ageas Federal Life Insurance Company from 26% to 30% through the acquisition of 3.2 crore shares at ₹30.45 per share. The transaction, completed in November 2025, received all requisite approvals from the RBI and IRDAI.
Federal Bank share price trend
The banking shares have been on a bull run since September and have gained 42%. The stock finished 2025 with a solid 34% gain, marking its fifth straight annual winning run.
The rally contributed to a 95% surge over three years and 270% over five years. Considering the stock’s 2020 low ₹35.70 apiece, it has delivered a massive return of 674%.
According to Trendlyne’s shareholding data, late investor Rakesh Jhunjhunwala’s wife, Rekha Jhunjhunwala, held a 2.42% stake at the end of the December 2025 quarter. Domestic mutual funds held the largest stake in the company at 37.52%, followed by FIIs and the public, with each holding 25.5% and 24.7%, respectively.
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