Federal Bank Ltd
Federal Bank Ltd
Banks F&OKey Fundamentals
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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63 extracted metrics + investor summaries across FY10–FY26.
Tapetide Score
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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.2,99,451 Cr.
- Company might be capitalizing the interest cost
- Dividend payout has been low at 7.14% of profits over last 3 years
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 6d agoFederal Bank Ltd is a mid-cap private sector bank with a market cap of Rs.89,637 Cr trading at a PE of 18.4x and PB of 2.31x. The bank has delivered strong stock price CAGR of 35% over 5 years and 24% compounded profit growth over 10 years, but faces concerns around low ROE of ~12-13%, significant contingent liabilities of Rs.2,99,451 Cr, and a dividend payout of just 7.14% of profits.
- Stock price CAGR of 80% over the last 1 year indicates strong market re-rating and investor confidence
- 10-year compounded profit growth of 24% demonstrates sustained long-term earnings momentum
- 5-year stock CAGR of 35% significantly outperforms broader banking index, reflecting consistent value creation
- 5-year compounded profit growth of 21% shows the bank has scaled earnings meaningfully over a medium-term horizon
- 10-year compounded sales growth of 14% reflects steady loan book and revenue expansion across cycles
- 3-year compounded sales growth of 19% suggests accelerating top-line momentum in recent years
- PE of 18.4x is reasonable relative to private sector banking peers that often trade at 20-25x, suggesting room for further re-rating
- TTM profit growth of 16% continues to outpace TTM revenue growth of 7%, indicating improving operating leverage and cost efficiency
- Contingent liabilities of Rs.2,99,451 Cr are over 3.3x the market cap of Rs.89,637 Cr, posing material risk if even a fraction crystallizes
- 3-year ROE of only 12-13% is below the 15%+ threshold typically expected of well-run private banks, limiting valuation premium potential
- Dividend payout of just 7.14% of profits over the last 3 years with a yield of only 0.33% offers negligible income to shareholders
- Low interest coverage ratio suggests the bank's net interest margin cushion may be under pressure from funding costs
- TTM revenue growth has decelerated sharply to 7% from the 3-year CAGR of 19%, signaling potential slowdown in loan growth or margin compression
- Potential capitalization of interest costs could mean reported profitability overstates true economic earnings
- PB ratio of 2.31x is elevated for a bank generating only 12-13% ROE, as fair value for such ROE levels is typically closer to 1.5-2x book
- Last year ROE declined to 12% from the 3-year and 5-year average of 13%, suggesting return on equity may be trending downward rather than improving
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 10h ago- Jana SFB integration risks Aug 26
Citi flags integration complexity, valuation concerns, and unsecured portfolio risks from the potential Jana Small Finance Bank acquisition.
- Jana acquisition boosts growth Aug 26
Jana SFB deal could add 14% to advances and 11% to deposits, offering geographic reach and high-yield secured PSL assets.
- $500m GIFT City fundraise Aug 18
Board met on Aug 21 to consider raising up to USD 500 million through foreign currency debt instruments via IFSC Banking Unit at GIFT City.
- Green loan portfolio at ₹10,489 cr Jul 30
FY26 BRSR report highlights green loan portfolio of ₹10,489 crore, coal exposure reduced to 0.35%, and Bureau Veritas assured ESG metrics.
- Dividend of ₹1.20 approved Aug 21
95th AGM approved FY26 financials, final dividend of ₹1.20 per share, and re-appointment of MD & CEO Krishnan Venkat Subramanian.
- Citi neutral, ₹360 target Aug 26
Citi maintains Neutral rating on Federal Bank with a target price of ₹360.
- Jana SFB promoter stake sale Aug 25
Jana SFB promoter likely to sell entire 16.9% stake to Federal Bank, with an open offer expected to follow.
- Multiple analyst/investor meets Aug 6
Federal Bank held one-on-one meetings with Blackstone, HDFC MF, HSBC, Axis MF, Nippon MF, RBC Global, and others between Jul 28 and Aug 6.
- Analyst meet scheduled Aug 27 Aug 24
Federal Bank to host virtual meeting with analysts and institutional investors on August 27, 2026.
TL;DR: Federal Bank is pursuing inorganic growth through the potential Jana SFB acquisition, which could meaningfully boost advances (+14%) and deposits (+11%), while also strengthening its balance sheet via a $500m GIFT City fundraise. ESG credentials are improving with a ₹10,489 crore green loan book. Key risks center on integration execution and unsecured loan exposure from Jana SFB. The trend is cautiously positive with active capital deployment and strong investor engagement, though execution on the acquisition will be the near-term catalyst.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 5,350 | 5,791 | 6,085 | 6,339 | 6,728 | 7,006 | 7,265 | 7,108 | 7,151 | 7,216 | 7,360 | 7,947 | 7,862 |
| Expenses | 1,634 | 1,661 | 1,814 | 1,917 | 2,048 | 2,149 | 2,349 | 2,265 | 2,506 | 2,519 | 2,595 | 3,017 | 2,665 |
| Financing Profit | 461 | 586 | 511 | 486 | 468 | 463 | 346 | 386 | 105 | 267 | 365 | 528 | 659 |
| Fin. Margin % | 9% | 10% | 8% | 8% | 7% | 7% | 5% | 5% | 1% | 4% | 5% | 7% | 8% |
| Other Income | 741 | 757 | 908 | 810 | 936 | 1,010 | 931 | 1,047 | 1,164 | 1,105 | 1,143 | 1,186 | 1,082 |
| Interest | 3,255 | 3,544 | 3,760 | 3,936 | 4,212 | 4,393 | 4,570 | 4,456 | 4,540 | 4,429 | 4,401 | 4,402 | 4,538 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 1,202 | 1,343 | 1,420 | 1,296 | 1,404 | 1,473 | 1,277 | 1,434 | 1,270 | 1,373 | 1,507 | 1,714 | 1,741 |
| Tax % | 26% | 26% | 25% | 25% | 26% | 25% | 26% | 23% | 25% | 26% | 25% | 19% | 25% |
| Net Profit | 894 | 1,007 | 1,067 | 996 | 1,047 | 1,115 | 951 | 1,120 | 951 | 1,023 | 1,125 | 1,392 | 1,302 |
| EPS in Rs | 4.16 | 4.23 | 4.26 | 3.99 | 4.2 | 4.47 | 3.85 | 4.44 | 3.74 | 4.03 | 4.44 | 5.44 | 5.09 |
| Gross NPA % | 2.37% | 2.27% | 2.28% | 2.11% | — | — | — | — | — | — | — | — | — |
| Net NPA % | 0.74% | 0.68% | 0.68% | 0.63% | — | — | — | — | — | — | — | — | — |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 30,385 |
| Expenses | 1,701 | 2,529 | 2,749 | 3,331 | 3,572 | 4,608 | 5,527 | 5,758 | 5,828 | 6,792 | 8,523 | 10,332 | 10,796 |
| Financing Profit | 731 | 38 | 382 | 358 | 747 | 304 | 352 | 664 | 2,009 | 2,278 | 1,952 | 1,571 | 1,819 |
| Fin. Margin % | 10% | 0% | 4% | 4% | 6% | 2% | 2% | 5% | 11% | 10% | 7% | 5% | 6% |
| Other Income | 879 | 808 | 1,084 | 1,160 | 1,335 | 1,882 | 1,972 | 2,121 | 2,436 | 3,216 | 3,924 | 4,598 | 4,515 |
| 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 | 17,770 |
| Depreciation | 79 | 108 | 124 | 125 | 122 | 126 | 115 | 139 | 182 | 234 | 288 | 306 | 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 | 6,335 |
| 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 | 4,843 |
| 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 | 19 |
| Div. Payout % | 18% | 25% | 18% | 21% | 21% | 0% | 8% | 19% | 7% | 8% | 7% | 7% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 | 9,534 | 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 | 3,60,152 | 4,02,081 |
| Fixed Assets | 446 | 508 | 477 | 452 | 462 | 477 | 504 | 643 | 890 | 996 | 1,456 | 1,420 |
| CWIP | 27 | 16 | 15 | 10 | 18 | 28 | 13 | 29 | 81 | 67 | 72 | 108 |
| 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 | 2,92,567 | 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 | 3,60,152 | 4,02,081 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 | -11,118 |
| 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 | -4,700 |
| 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 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 15% | 6% | 10% | 9% | 10% | 11% | 11% | 11% | 15% | 15% | 13% | 12% |
Documents
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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]