Federal Bank's Q1 FY26 net profit dropped 14.7% YoY to ₹861.8 crore, missing estimates and weighed by asset quality pressure.

• GNPA rose to ₹4,669.6 crore; NPA ratios worsened as agri and MFI portfolio slippages pushed up credit costs.
• Net interest income rose 2% YoY to ₹2,336.8 crore, with 9% loan growth and 8% deposit growth in the quarter.
• CEO expects credit costs to normalise; shares fell 3.16% on August 1 and are down over 10% in the past month.