The Kerala-headquartered bank had fixed August 22 as the record date for its final dividend for the financial year ended March 31, 2025, according to an exchange filing dated July 30. “The Bank has fixed Friday, August 22, 2025, as the ‘Record Date’, to determine the members of the Bank eligible to receive the Final Dividend,” the lender said in its filing.
Earlier, the board of Federal Bank approved a dividend of 60%, or Rs 1.20 per equity share of face value Rs 2, for FY2025. The payment, however, remains subject to shareholder approval at the bank’s upcoming Annual General Meeting (AGM). “Approved the convening of the 94th Annual General Meeting (AGM) of the Bank on Friday, August 29, 2025…,” the filing added.
As per market rules, shares that trade ex-dividend no longer carry the right to the declared payout. Therefore, investors buying Federal Bank shares on or after Friday will not be eligible for the dividend.
Track record of payouts
Federal Bank has been consistent in rewarding its shareholders. According to BSE data, the bank paid a final dividend of Rs 1.20 per share in 2024. In prior years, it distributed Re 1 in 2023, Rs 1.8 in 2022, and Rs 0.7 in 2021.
Recent earnings
The bank reported a weak June quarter performance. Net profit fell 15% year-on-year to Rs 862 crore in Q1 FY2026, hurt by narrowing margins and higher provisions due to bad assets. Net interest income edged up 2% to Rs 2,337 crore, while other income surged 22% to Rs 1,113 crore, driven by core fees and treasury gains.
Despite a 9% growth in advances, the bank’s net interest margin slipped to 2.94% from 3.16% a year earlier, weighing on profitability.Also read | Ola Electric shares skid 7% after 2-day rally as VAHAN data cools sentiment
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