(MENAFN- IANS) Mumbai, Oct 18 (IANS) Federal Bank on Saturday reported its net profit for the second quarter of the current financial year (Q2 FY26) at Rs 955.26 crore, down 9.5 per cent year-on-year (YoY).

The private sector lender had posted a net profit of Rs 1,056.6 crore in the corresponding quarter a year ago (Q2 FY25).

However, the bank's profit surged over 10 per cent quarter-on-quarter (QoQ) from Rs 861.75 crore in the previous quarter.

Despite a decline in net profit, Federal Bank's total income jumped over 3.5 per cent YoY to Rs 7,824.3 crore from Rs 7,541.23 crore.

The net interest income (NII) for the quarter stood at Rs 2,495 crore, while the operating profit stood at Rs 1,644.17 crore.

According to its exchange filing, total deposits increased 7.36 per cent YoY, while net advances grew 6.23 per cent YoY.

Meanwhile, the total expenditure for the July-September period stood at Rs 6,180 crore, up 3 per cent YoY from Rs 5,975.87 crore in the same quarter a year ago.

The total business of the Bank reached Rs 533,576.64 crore, registering a growth of 6.84 per cent YoY.

Additionally, net advances increased from Rs 2,30,312.24 crore in Q2 FY25 to Rs 2,44,657.06 crore till September 30 this year -- a growth of over 6.23 per cent YoY.

According to the bank, the total deposits increased 7.3 per cent from Rs 269,106.59 crore in the same quarter a year ago to Rs 288,919.58 crore till the end of this quarter.

“Having spent over a year in this role, I have a deep sense of conviction about where the Bank stands today and the direction we're headed. Over the past few quarters, we've undertaken several strategic reorientations to strengthen our foundation and build for the future - and the results are beginning to show," said KVS Manian, Managing Director and CEO, Federal Bank.

"Our CASA franchise continues to demonstrate sustained and meaningful growth, reflecting the trust of our customers and the consistency of our team's execution. We're also broadening our asset mix thoughtfully, increasing the share of our mid-yield portfolio in a measured and disciplined way," Manian added.

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