Federal Bank, DCB and South Indian Bank shares rise up to 16% on strong Q2 results. Check details

Shares of Federal Bank, DCB Bank, and South Indian witnessed renewed buying and rallied up to 16.5% after the three lenders reported a strong set of numbers for the second quarter of the financial year 2026.

The Federal Bank shares touched an intraday high of Rs 227, higher by 7% from the last close on the NSE. DCB Bank shares rallied 13% to touch their day’s high of Rs 146 per share. South Indian Bank stock rose over 16% to its day’s high of Rs 38 on Monday, October 20.

Federal Bank Q2

The private lender released its quarterly results for the July-September quarter, posting a 9.6% year-on-year (YoY) decline in its standalone net profit at Rs 955.26 crore, against Rs 1,056.69 crore in the year-ago period. However, the bank reported its highest-ever net interest income (NII) at Rs 2,495 crore.

Despite the YoY drop, the bank’s net profit rose 10.85% QoQ. Federal Bank also noted that it reported its highest-ever fee income at Rs 886 crore, underscoring continued momentum in non-interest revenue streams. The CASA ratio rose to 31.01%, marking a 94 bps year-on-year increase, as CASA deposits grew 10.71% YoY to reach Rs 89,591 crore. Meanwhile, the operating profit climbed 5.65% sequentially to Rs 1,644.17 crore.

DCB Bank Q2

DCB Bank Ltd reported a net profit of Rs 184 crore for the September quarter, up 18.3% year-on-year from Rs 155 crore, supported by higher interest income and controlled expense growth.

Net interest income (NII) rose 17.1% year-on-year to Rs 596 crore from Rs 509 crore, aided by improved net interest margins and lower cost of deposits and borrowings. The bank’s net interest margin (NIM) for the quarter stood at 3.23%, compared with 3.20% a year ago.

Asset quality showed slight improvement, with gross non-performing assets (NPA) declining to 2.91% from 2.98% in the previous quarter, while net NPA eased to 1.21% from 1.22%.

South Indian Bank Q3

The lender reported a net profit of Rs 351 crore for the quarter, up 8.2% from the same period last year. The increase was supported by a 26% rise in other income, which reached Rs 516 crore.

However, the bank’s net interest income (NII), its core earnings, declined 8.3% year-on-year to Rs 809 crore from Rs 882 crore in the same quarter last year.

Asset quality showed slight improvement compared with the June quarter. Gross NPA fell to 2.93% from 3.15%, while net NPA eased to 0.56% from 0.68%.

At about 10 am, Nifty Bank was quoting at 57,996, higher by 0.5% from the last close. The index has risen over 13% on a year-to-date basis.

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