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Federal Bank Ltd
NSE: FEDERALBNK BSE: 500469 INE171A01029 Financial Services Bank 🔎 Screen
NIFTY 200 NIFTY 500 Midcap 50 Midcap 100 Midcap 150 NIFTY Bank
₹70,565 Cr
Market Cap
1.78
P/B
3.18%
NIM
11.6%
ROE
1.72%
GNPA
65.7%
Fin. Margin
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
Shareholding
About

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..It is the second-largest bank and the largest private sector bank in Kerala

✓ Strengths

No strengths data yet.

! Concerns 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
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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3-Statement Financial Model
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Strong beat – Q4 net profit of ₹1,259 Cr (+22% YoY) driven by record NII (₹3,173 Cr, +33% YoY), NIM expansion to 3.74%, lower provisions (excluding one-offs), and fee income growth (+24% YoY). Core metrics excluding one-offs are equally robust with RoA at 1.24% and RoE at 12.47%. quarter Investor Presentation One-Pager? Mar 2026
Net Interest Income
₹3,173 Cr
+33% YoY; best ever quarter
Net Interest Margin
3.74%
+62 bps YoY; annualized, 3.20% excl one-off
Net Profit
₹1,259 Cr
+22% YoY; excl one-off ₹1,145 Cr (+11% YoY)
RoA (Annualized)
1.36%
vs 1.24% Q4 FY25; excl one-off 1.24%
CASA Ratio
32.94%
CASA deposits crossed ₹1,03,390 Cr; up 271 bps YoY
Gross NPA Ratio
1.62%
Down 22 bps YoY; NNPA 0.20% (-24 bps YoY)
What Went Right
  • NII grew 33% YoY to ₹3,173 Cr, outpacing balance sheet growth (11% YoY deposits), aided by NIM expansion to 3.74% (vs 3.12% Q4 FY25) as cost of funds fell 60 bps YoY.
  • CASA deposits crossed ₹1,03,390 Cr for the first time, with CASA ratio rising to 32.94% (+271 bps YoY) driven by SB growth (5% QoQ) and NRE deposits (12% YoY to ₹93,660 Cr).
  • Asset quality improved sharply: GNPA fell to 1.62% (vs 1.84% Q4 FY25), NNPA to 0.20% (vs 0.44%), and PCR (excl TWO) reached 87.07% (+1,170 bps YoY).
  • Fee income rose 24% YoY to ₹991 Cr, led by insurance distribution (+58% YoY), processing fees (+28% YoY), and forex/derivatives (+37% YoY).
  • Operating profit surged 55% YoY to ₹2,276 Cr, with cost-to-income ratio improving 383 bps YoY to 47.28% (excl one-off: 52.86%).
What to Watch
  • Credit cost spiked to 118 bps annualized in Q4 (excl one-off: 47 bps) due to a ₹456 Cr floating NPA provision; core credit cost is moderate but the provisioning buffer adds drag.
  • Net profit growth excluding one-offs was only 11% YoY (₹1,145 Cr vs ₹1,030 Cr Q4 FY25), indicating core earnings momentum is moderate despite headline beat.
  • Retail slippage ratio remained elevated at 1.25% (vs bank level 0.74%), suggesting continued stress in the retail book, particularly in Agri/MFI (GNPA ₹1,414 Cr).
  • CASA ratio improved but remains below the 35%+ target often sought by analysts; reliance on bulk deposits (deposits <₹3 Cr at 85%) leaves some margin vulnerability.
  • Cost-to-income excluding one-offs (52.86%) is still above the 50% threshold, reflecting ongoing investment in branches and digital infrastructure.
Investor Lens
Federal Bank delivered a strong quarter on revenue and asset quality, but one-off distortions inflate headline profit. The underlying thesis—steady NII expansion via liability repricing and fee income momentum—remains intact. However, the elevated retail slippage and need for floating provisions warrant caution. Key to watch next quarter: sustainability of NIM above 3.20% (excl one-off), trajectory of CASA ratio toward 33%+, and whether credit cost normalizes below 50 bps. The bank's capital position is solid (CRAR 17.25%), but organic ROE improvement hinges on continued cost discipline and fee diversification.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Federal Bank's Q4 net profit rises 24.3% to ₹1,392 Cr
Revenue
Federal Bank's revenue increased by 11.8% YoY to ₹7,947 Cr, and 8% QoQ. Other income stood at ₹1,186 Cr. Interest income was ₹4,402 Cr.
Profitability
Net profit rose 24.3% YoY to ₹1,392 Cr, with a tax rate of 19%. EPS increased to 5.44 from 4.44 YoY. PBT was ₹1,714 Cr.
Margins
Financing margin was 7%, up from 5% YoY and QoQ. This increase in margin is a positive sign for the bank's profitability.
Cash Flow
Not applicable for banking/financial companies.
Balance Sheet
Total assets stood at ₹402,081 Cr. Reserves were ₹39,550 Cr, indicating a strong capital base.
Key Risks
Risks include potential NIM compression, asset quality deterioration, and credit cost increases. Regulatory changes could also impact the bank's operations.
Outlook
The bank's strong revenue and profitability growth trend may continue, driven by increasing interest income and improving margins. However, the bank needs to be cautious about potential risks to its asset quality and margins.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
Corporate/Wholesale Banking
3,056
3,063
Other Banking operations
116
144
Retail Banking - Digital Banking
831
849
Retail Banking - Other Retail Banking
7,725
7,955
Treasury
1,651
1,491
Total 13,380 13,501

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

🏦 Banking KPIs

NIM, GNPA, CASA, CAR, ROA, ROE and more — extracted from investor presentations
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Quarterly banking KPIs with historical trend — NIM, GNPA, CASA, CAR and more, AI-extracted from investor presentations
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📊 Analysis Methodology

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