| Metric | Movement | Analysis |
|---|---|---|
| Gold Loan AUM | ₹32,323 Cr (↑9% YoY, ↑3.4% QoQ) | Steady growth in the gold loan portfolio, contributing significantly to the retail asset mix. |
| Gold Loan Yield | 10.2% (for Q2 FY26) | Healthy yield, though lower than pure-play gold financiers, reflecting the bank's diversified portfolio. |
| Gold Loan LTV | 55.64% | Conservative loan-to-value ratio, indicating a strong safety margin on the gold portfolio. |
| Gold Tonnage | 57.05 tonnes (implied from book size and LTV) | Substantial physical gold holdings, underlining the scale and security of the portfolio. |
| Return on Assets (RoA) | 1.09% (↓ from 1.28% YoY) | Modest YoY decline but improved from the previous quarter (1.00% in Q1), reflecting stabilized profitability. |
| Return on Equity (RoE) | 11.01% (↓ from 13.65% YoY) | Decline is consistent with the lower RoA, impacted by higher capital base and possibly compressed margins. |
| Capital Adequacy (CRAR) | 15.71% (↓ from 16.4% YoY) | Remains comfortably above the regulatory requirement, though slightly decreased due to business growth. |
Federal Bank's gold loan business continues its steady growth, with a conservative LTV ensuring portfolio safety. The key profitability metrics (RoA and RoE) have moderated on a YoY basis but show sequential improvement, indicating a recovery trend. The bank maintains a solid capital position (CRAR ~15.7%), well above regulatory minima, supporting its ongoing growth initiatives.