Federal Bank Boosts Wealth Focus, Eyes Acquisitions for Growth

• Federal Bank is prioritizing wealth management, aiming for both organic and inorganic expansion, particularly targeting the mass affluent segment.
• The bank will actively evaluate acquisition opportunities based on price and strategic fit to scale its wealth franchise.
• Margins and returns are expected to improve, with a goal to lift net interest margins (NIM) and return on assets (ROA) by 5-10 basis points annually.
• Key developments include Blackstone's proposed 9.99% investment (₹6,196 crore) and Federal Bank increasing its stake in Ageas Federal to 30%.
• The bank reported strong Q3FY26 results, with net interest income up 9.1% to ₹2,653 crore and profit after tax rising 9% to ₹1,041 crore.

Why It Matters: Federal Bank is strategically enhancing its wealth management and gold loan segments, aiming for sustained growth and improved profitability.