Federal Bank Q3 Beats Expectations; Jhunjhunwala, Zerodha Gain Rs 200 Crore
Federal Bank Q3 Beats Expectations; Jhunjhunwala, Zerodha Gain Rs 200 Crore
Federal Bank delivers a strong Q3 with rising margins and profits, lifting Rekha Jhunjhunwala and Zerodha holdings by over Rs 200 crore.
Federal Bank’s December-quarter numbers show a strong performance with a net profit of Rs 1,041.21 crore, up 8.98% year-on-year. Net interest income rose 9.11% to Rs 2,652.73 crore, while the net interest margin stood at 3.18%. The bank also reported a robust improvement in fee income, which climbed to Rs 896.47 crore, up 18.57% YoY. Asset quality improved as gross non-performing assets settled at 1.72%, down 11 basis points QoQ and 23 basis points YoY.
Deposits rose 12% YoY to Rs 2,97,796 crore and advances grew 11% YoY to Rs 2,55,569 crore, underscoring steady earning momentum across core segments. Management highlighted that the quarter benefited from ongoing balance-sheet discipline, a stronger liability franchise, and a calibrated shift in asset mix toward higher risk-adjusted returns. Cost discipline and prudent risk management remained central to their operating approach.
The market reaction was positive, with the stock jumping nearly 11% in Friday’s session after the results. Among individual holders, Rekha Jhunjhunwala’s stake in Federal Bank comprised 5,90,30,060 shares (about 2.42%), valued at Rs 1,620.74 crore at intraday levels on Wednesday. Zerodha Broking owned about 1.02% of the bank, worth Rs 683.12 crore at intraday prices. The quarter’s performance reflected all-time highs in net interest income, operating profit, and fee income, reinforcing optimism about the bank’s trajectory amid a competitive lending landscape.
