Federal Bank Ltd logo

Federal Bank Ltd

FEDERALBNK NSE

The Federal Bank Limited (‘the Bank’) was incorporated in 1931 as Travancore Federal Bank Limited. It provides retail and corporate banking, para banking activities such as debit card, third party product distribution etc., treasury and foreign exchange business.[1].It is the second-largest bank and the largest private sector bank in Kerala[2]

AI Verdict: BUY Confidence: 6%

Federal Bank trades at a reasonable PE of 17.6x with strong analyst consensus (73% buy ratings) and impressive stock CAGR of 38% over 3 years. However, low ROE of ~13%, massive contingent liabilities of Rs.2,17,515 Cr, and slowing TTM profit growth of 5% warrant caution despite the attractive valuation.

Key Fundamentals

MidcapPrivate BankBanks
Market Cap
₹79,743 Cr
Volatility
High Risk
P/E Ratio
18.36
EBITDA
₹0.00 Cr
Return on Equity
12.7%
Debt to Equity
0
Book Value
₹156.02
EPS
₹16.45
52W High
₹327
52W Low
₹185.11

Technical Indicators

Key Insights

Weaknesses

5
  • Company has low interest coverage ratio.
  • Company has a low return on equity of 12.9% over last 3 years.
  • Contingent liabilities of Rs.2,17,515 Cr.
  • Company might be capitalizing the interest cost
  • Dividend payout has been low at 7.14% of profits over last 3 years

Growth Rate

Revenue Growth
-7.36% ↘
Net Income Growth
6.71% ↘
Cash Flow Change
36.85% ↗
ROE
-6.69% ↘
ROCE
3.70% ↗
EBITDA Margin (Avg.)
-24.31% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Federal Bank trades at a reasonable PE of 17.6x with strong analyst consensus (73% buy ratings) and impressive stock CAGR of 38% over 3 years. However, low ROE of ~13%, massive contingent liabilities of Rs.2,17,515 Cr, and slowing TTM profit growth of 5% warrant caution despite the attractive valuation.

Bull Case 8
  • Strong analyst consensus with 72.73% buy ratings (24 out of 33 analysts recommend buy)
  • Attractive valuation at PE of 17.6x, reasonable for a mid-cap private bank with consistent growth
  • Exceptional stock price CAGR of 56% over 1 year and 38% over 3 years indicates strong market momentum
  • Consistent compounded sales growth of 19% over 3 years and 16% over 5 years shows steady business expansion
  • Compounded profit growth of 21% over 5 years and 24% over 10 years demonstrates long-term earnings compounding
  • Price-to-book ratio of 2.06x is reasonable for a private sector bank with growing franchise value
  • Market cap of Rs.79,053 Cr places it in a sweet spot for re-rating as it scales toward large-cap territory
  • Stable ROE of 12-13% across 3, 5, and 10-year periods shows consistency in capital efficiency
Bear Case 8
  • Low interest coverage ratio flagged as a structural concern for a banking institution
  • Massive contingent liabilities of Rs.2,17,515 Cr pose significant off-balance-sheet risk
  • TTM profit growth has decelerated sharply to just 5% compared to 11% over 3 years
  • ROE of 12.9% over 3 years is below the 15%+ threshold expected from quality private banks
  • Dividend payout of only 7.14% of profits over last 3 years with a yield of just 0.37% offers poor income returns
  • TTM sales growth has slowed to 6% from 19% three-year CAGR, signaling potential revenue headwinds
  • 6.06% of analysts (2 out of 33) recommend sell, and 21.21% recommend hold, indicating not full conviction
  • Possibility of interest cost capitalization raises questions about reported profitability quality

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 2
  • IFC cuts stake to 5.28% Jun 8

    IFC entities sold 47.46 million shares between November 2024 and June 2026, reducing holding from 7.32% to 5.28%, signaling reduced confidence from a major institutional investor.

  • Geopolitical uncertainty weighs on sentiment Jun 3

    Ongoing geopolitical uncertainties continue to keep investor sentiment cautious, with markets consolidating around Nifty support at 23,200.

Positives 4
  • Stock surges 48.74% in one year Jun 9

    Federal Bank gained 48.74% over the past year, massively outperforming Nifty (-7.57%) and Nifty Bank (-2.91%), trading at ₹313.85 with a PE of 18.26.

  • Third consecutive session of gains Jun 9

    Stock rose 3.04% on Jun 9 with 7.32% monthly gains, and analysts at Kotak Securities set a target of ₹315 from ₹293.05 (since achieved).

  • FCNR Max Deposit Scheme launched Jun 12

    Federal Bank launched the FCNR Max Deposit Scheme on June 11, 2026, targeting NRI customers under the FCNR (B) deposit category to boost deposit mobilization.

  • Director re-appointment approved Jun 4

    Shareholders approved re-appointment of Harsh Dugar as Executive Director and variable pay for former executives Shyam Srinivasan and Shalini Warriar for FY 2024-25.

Neutral 3
  • ₹32.26 Cr block trade on NSE Jun 19

    A block trade of ~10.09 lakh shares was executed at ₹319.65 per share on NSE, valued at ₹32.26 crores, likely by institutional investors.

  • Active investor engagement schedule Jun 12

    Federal Bank held meetings with DAM Capital, JP Morgan, Goldman Sachs, and 15+ investors at Citi and BofA conferences between May 27 and June 12, 2026.

  • Below-average trading volumes Jun 9

    Volume stood at 85.74 lakh shares versus a daily average of 204.66 lakh shares over the past month, suggesting the rally occurred on lighter participation.

TL;DR: Federal Bank is in a strong momentum phase, up 48.74% over one year and significantly outperforming both Nifty and Nifty Bank indices. The bank is actively engaging institutional investors and launching NRI-focused products. The key risk is IFC's stake reduction and below-average volumes during the rally. The trend is clearly improving with price targets being achieved, though investors should watch for broader geopolitical headwinds and whether volumes confirm the breakout.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
5,012
5,350
5,791
6,085
6,339
6,728
7,006
7,265
7,108
7,151
7,216
7,360
7,947
Expenses
1,574
1,634
1,661
1,814
1,917
2,048
2,149
2,349
2,265
2,506
2,519
2,595
3,017
Financing Profit
500
461
586
511
486
468
463
346
386
105
267
365
528
Fin. Margin %
10%
9%
10%
8%
8%
7%
7%
5%
5%
1%
4%
5%
7%
Other Income
768
741
757
908
810
936
1,010
931
1,047
1,164
1,105
1,143
1,186
Interest
2,938
3,255
3,544
3,760
3,936
4,212
4,393
4,570
4,456
4,540
4,429
4,401
4,402
Depreciation
0
0
0
0
0
0
0
0
0
0
0
0
0
PBT
1,269
1,202
1,343
1,420
1,296
1,404
1,473
1,277
1,434
1,270
1,373
1,507
1,714
Tax %
26%
26%
26%
25%
25%
26%
25%
26%
23%
25%
26%
25%
19%
Net Profit
964
894
1,007
1,067
996
1,047
1,115
951
1,120
951
1,023
1,125
1,392
EPS in Rs
4.51
4.16
4.23
4.26
3.99
4.2
4.47
3.85
4.44
3.74
4.03
4.44
5.44
Gross NPA %
2.35%
2.37%
2.27%
2.28%
2.11%
—
—
—
—
—
—
—
—
Net NPA %
0.73%
0.74%
0.68%
0.68%
0.63%
—
—
—
—
—
—
—
—
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
7,488
7,826
8,783
9,915
11,635
13,590
14,314
14,382
17,812
23,565
28,106
29,674
Expenses
1,701
2,529
2,749
3,331
3,572
4,608
5,527
5,758
5,828
6,792
8,523
10,637
Financing Profit
731
38
382
358
747
304
352
664
2,009
2,278
1,952
1,265
Fin. Margin %
10%
0%
4%
4%
6%
2%
2%
5%
11%
10%
7%
4%
Other Income
879
808
1,084
1,160
1,335
1,882
1,972
2,121
2,436
3,216
3,924
4,598
Interest
5,056
5,259
5,653
6,226
7,316
8,678
8,435
7,959
9,975
14,495
17,631
17,772
Depreciation
79
108
124
125
122
126
115
139
182
234
288
0
PBT
1,530
739
1,342
1,393
1,960
2,060
2,209
2,646
4,263
5,261
5,588
5,863
Tax %
34%
34%
36%
35%
35%
25%
25%
26%
26%
25%
25%
24%
Net Profit
1,058
486
867
935
1,318
1,590
1,680
1,996
3,210
3,964
4,234
4,491
EPS in Rs
6.17
2.83
5.03
4.74
6.63
7.93
8.34
9.37
14.95
15.93
16.93
17.63
Div. Payout %
18%
25%
18%
21%
21%
0%
8%
19%
7%
8%
7%
7%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
171
344
345
394
397
399
399
421
423
487
491
493
Reserves
7,529
7,720
8,607
11,880
13,101
14,424
16,105
18,835
21,699
29,618
34,047
39,550
Borrowing
2,393
5,236
6,345
12,329
8,706
12,528
12,271
19,587
25,862
25,160
32,596
33,193
Deposits
70,823
79,171
97,662
1,11,970
1,34,879
1,52,252
1,72,186
1,81,678
2,12,988
2,52,455
2,83,484
3,13,491
Other Liabilities
1,993
2,234
2,527
2,640
3,469
3,751
4,006
5,721
7,031
10,119
9,626
15,354
Total Liabilities
82,909
94,706
1,15,486
1,39,214
1,60,552
1,83,353
2,04,967
2,26,241
2,68,004
3,17,839
3,60,244
4,02,081
Fixed Assets
446
508
477
452
462
477
504
643
890
996
1,456
1,528
CWIP
27
16
15
10
18
28
13
29
81
67
72
0
Investments
20,349
24,920
27,912
30,595
31,676
35,715
36,732
39,065
48,702
61,043
66,058
76,471
Other Assets
62,087
69,262
87,081
1,08,158
1,28,397
1,47,133
1,67,717
1,86,504
2,18,330
2,55,733
2,92,658
3,24,081
Total Assets
82,909
94,706
1,15,486
1,39,214
1,60,552
1,83,353
2,04,967
2,26,241
2,68,004
3,17,839
3,60,244
4,02,081
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
5,158
-1,557
3,431
-5,051
7,873
3,731
11,179
-7,774
489
6,431
8,801
4,349
Investing
-1,364
1,990
-2,384
-1,579
-3,378
-4,688
-3,913
901
-9,860
-8,912
-3,799
-11,109
Financing
-3,544
205
985
8,371
-3,637
3,661
-208
8,193
6,038
3,871
7,401
2,069
Net Cash Flow
250
639
2,032
1,741
858
2,704
7,058
1,320
-3,332
1,390
12,403
-4,691
Free Cash Flow
5,039
-1,717
3,338
-5,145
7,750
3,585
11,053
-8,062
8
6,114
8,050
4,063
CFO/OP
100
-29
64
-66
107
49
134
-80
14
46
52
29
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
15%
6%
10%
9%
10%
11%
11%
11%
15%
15%
13%
12%

Shareholding Pattern

As of Mar 2026
DIIs 50.39%
FIIs 26.05%
Public 16.53%
Others 7.03%
Total 100.00%
  Mar 2021Jun 2021Jul 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Jul 2023Sep 2023Oct 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
29.42%
29.39%
28.57%
28.64%
27.72%
26.32%
26.28%
26.86%
25.54%
24.94%
26.05%
DIIs
42.04%
43.44%
41.69%
42.07%
41.14%
41.85%
40.62%
42.64%
42.36%
43.79%
41.08%
43.92%
44.66%
44.44%
44.70%
45.38%
45.19%
47.18%
48.90%
49.07%
48.17%
49.71%
51.11%
50.39%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.00%
0.00%
0.00%
0.00%
Public
29.82%
29.32%
27.89%
28.97%
30.27%
27.78%
28.10%
20.52%
20.32%
20.68%
22.94%
20.15%
19.15%
18.69%
18.38%
18.80%
18.79%
17.89%
17.58%
17.53%
17.78%
17.60%
16.81%
16.53%
Others
28.14%
27.24%
30.42%
28.96%
28.59%
30.37%
31.28%
36.83%
37.31%
35.53%
35.97%
35.92%
36.19%
7.45%
7.53%
7.24%
7.38%
7.20%
7.20%
7.12%
7.18%
7.14%
7.15%
7.03%
No. of Shareholders
5,29,134
5,71,461
5,93,595
6,19,063
7,79,303
7,23,623
7,54,488
6,90,752
7,07,157
7,36,674
8,09,397
8,06,326
7,82,900
7,87,713
7,96,959
8,70,010
8,55,887
8,51,199
8,51,174
8,47,981
8,51,049
8,48,372
8,23,258
8,21,700

Documents

1
Concall - Apr 2017 Apr 2017
2
Concall - Jul 2017 Jul 2017
3
Concall - Oct 2017 Oct 2017
4
Concall - Jan 2018 Jan 2018
5
Concall - May 2018 May 2018

Frequently Asked Questions about Federal Bank Ltd

What does Federal Bank Ltd do?
The Federal Bank Limited (‘the Bank’) was incorporated in 1931 as Travancore Federal Bank Limited. It provides retail and corporate banking, para banking activities such as debit card, third party product distribution etc., treasury and foreign exchange business.[1].It is the second-largest bank ...
Where is Federal Bank Ltd (FEDERALBNK) listed?
Federal Bank Ltd is listed on the Indian stock exchanges. It is listed on NSE: FEDERALBNK and BSE: 500469. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Federal Bank Ltd belong to?
Federal Bank Ltd operates in the Financial Services sector within the Banks industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Federal Bank Ltd?
Federal Bank Ltd has a market capitalisation of approximately ₹79743.29 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Federal Bank Ltd?
The Price-to-Earnings (PE) ratio of Federal Bank Ltd is 18.36. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Federal Bank Ltd?
Over the past 52 weeks, Federal Bank Ltd has traded between a low of ₹185.11 and a high of ₹327. This range helps investors understand the stock's price volatility and recent trading levels.
Does Federal Bank Ltd pay dividends?
Yes, Federal Bank Ltd has a dividend yield of 0.37%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Federal Bank Ltd?
Federal Bank Ltd has a Return on Equity (ROE) of 12.70%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Federal Bank Ltd on Tapetide?
On Tapetide, you can view Federal Bank Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

The Federal Bank Limited (‘the Bank’) was incorporated in 1931 as Travancore Federal Bank Limited. It provides retail and corporate banking, para banking activities such as debit card, third party product distribution etc., treasury and foreign exchange business.[1].It is the second-largest bank and the largest private sector bank in Kerala[2]

Website federalbank.co.in
CEO Mr. Krishnan Venkat Subramanian
Employees 15,545
Listed 1995-02-08
Face Value ₹ 2
Issued Size 2,46,30,54,121

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