DBT Bureau
Bengaluru, 20 Feb 2026
Federal Bank saw buying interest from investors on Friday as the private bank announced that it is due to receive Rs 686 crore of tax refund after the successful resolution of a long-standing tax matter, the bank announced Thursday.
The refund is related to three assessment years – AY 2011-12, AY 2012-13 and AY 2013-14 including interest, the bank said in an exchange filing.
Here are the key highlights of Federal Bank’s Q3FY26 results:
- Net profit stood at ₹1,041.21 crore, up 9% QoQ, supported by stronger core income and operating leverage.
- Net Interest Income (NII) grew to ₹2,652.73 crore, up 6.31% QoQ and 9.11% YoY.
- Net Interest Margin (NIM) expanded 12 bps QoQ to 3.18%, supported by liability mix improvement and asset repricing.
- Asset quality strengthened further, with Gross NPA at 1.72% and Net NPA at 0.42%.
- Deposits growth -11.8% YoY; advances growth – 10.94% YoY.
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