Rekha Jhunjhunwala’s Portfolio Stock Jumps Over 4% on Highest-Ever Quarterly Profit; Gross and Net NPAs Hit Decade Lows

Indian equity markets witnessed sharp volatility on Monday, October 19, as the Nifty 50 slipped below the crucial psychological level of 23,000. The index was trading near its day's low at 22,965, down 182 points, or 0.80 per cent. Meanwhile, the India VIX surged nearly 4.7 per cent to 14.71, reflecting heightened market volatility.

Despite the weakness in the broader market, one stock from the Banking sector attracted investors' attention after rallying over 4 per cent following the announcement of its Q2FY27 results.

The stock in focus is Federal Bank, whose share price jumped over 4 per cent on Monday, October 19, 2026, after the private sector lender reported its highest-ever profit, supported by growth in its core banking operations.

Federal Bank Reports Growth in Core Banking Business

According to the bank's Q2FY27 performance update, its total business franchise crossed Rs 6.4 lakh crore, registering YoY growth of 20 per cent, while customer assets surpassed Rs 3 lakh crore, also growing 20 per cent YoY.

Importantly, the growth was supported by its core operations, with net interest income rising 26 per cent and fee income increasing about 32 per cent. The bank also reported that fee income relative to its earning assets reached an all-time high.

Another development was the improvement in asset quality. Both gross and net non-performing assets (NPAs) declined to their lowest levels in a decade. Slippages fell 27 per cent, while the provision coverage ratio stood at 87 per cent.

On the deposits front, average current account and savings account (CASA) balances crossed Rs 1 lakh crore, reflecting YoY growth of 21 per cent.

Rekha Jhunjhunwala Holds 2.41 Per Cent Stake

Apart from its financial performance, another aspect of Federal Bank that may interest market participants is its shareholding pattern.

Rekha Jhunjhunwala, wife of the late Ace Investor Rakesh Jhunjhunwala, holds a 2.41 per cent stake in Federal Bank, representing 5,90,30,060 equity shares.

For context, Federal Bank is a mid-sized private sector lender with a presence across India. As of June 30, 2026, the bank operated a network of 1,650 banking outlets and 2,135 ATMs and cash recyclers.

The combination of growth in its core banking business, improving asset quality and stronger operating performance has brought Federal Bank into focus, even as the overall market remains under selling pressure.

Disclaimer: The article is for informational purposes only and not investment advice.