Loading…
Federal Bank Ltd
NSE: FEDERALBNK BSE: 500469 INE171A01029 Financial Services Bank 🔎 Screen
NIFTY 200 NIFTY 500 Midcap 50 Midcap 100 Midcap 150 NIFTY Bank
₹87,917 Cr
Market Cap
2.22
P/B
3.33%
NIM
11.6%
ROE
1.52%
GNPA
6.0%
Fin. Margin
-4.2%
% from 52W High
94
α RS
⚖️ Compare 🔒 Generate Report 📚 Guides
📈 Price History
Ratio Health
Excellent
Good
Average
Poor
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
📊 Quick Scorecard
Loading…
🔒
Premium Feature
AI-generated 10-section company profile — business model, financials, strengths, risks & management quality
Upgrade to Premium
Already a member? Log in
📐
3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
Open Model →
Strong YoY driven by NII and asset quality, but sequential dips in NII, fee income, and CASA ratio temper the result — mixed relative to Q4. quarter Investor Presentation One-Pager? Jun 2026
Revenue (NII)
₹2,946 Cr
+26% YoY, but -7% QoQ from ₹3,173 Cr (Q4 includes one-off)
Cost to Income
52.50%
Down 239bps YoY, stable QoQ (excl. Q4 one-off: 52.86%)
PAT
₹1,177 Cr
+37% YoY, but -7% QoQ from ₹1,259 Cr (Q4 includes one-off)
GNPA
1.52%
39bps improvement YoY; Net NPA at decadal best 0.18%
What Went Right
  • NII surged 26% YoY to ₹2,946 Cr, supported by margin expansion (NIM 3.33% vs 2.94% YoY).
  • PAT up 37% YoY to ₹1,177 Cr, with operating profit up 22% to ₹1,897 Cr.
  • Asset quality improved: GNPA 1.52% (down 39bps YoY), Net NPA 0.18% (down 30bps), PCR at 87.37% (up 1,296bps YoY).
  • Gold loan portfolio grew 33% YoY and 8% QoQ to ₹41,476 Cr, driving higher-yielding retail mix.
What to Watch
  • Sequential weakness: NII fell 7% QoQ (₹2,946 Cr vs ₹3,173 Cr) and PAT fell 7% QoQ (₹1,177 Cr vs ₹1,259 Cr), partly due to Q4 one-off but still below trend.
  • Fee income declined 3% QoQ to ₹957 Cr, driven by a 17% drop in loan processing fees and 18% fall in insurance distribution income.
  • CASA ratio slipped 71bps QoQ to 32.23%, as SA growth (+3.4% QoQ) was outpaced by term deposits, indicating modest deposit franchise pressure.
  • Total deposits grew only 2% QoQ vs 5% QoQ advance growth, widening the credit-deposit gap and increasing reliance on borrowings.
Investor Lens
The earnings beat on a YoY basis confirms the bank's trajectory of margin expansion and asset quality improvement, but the sequential moderation in NII and fee income — compounded by a declining CASA ratio — introduces caution. NIM at 3.33% is still healthy, but yield on advances continues to compress (8.73% vs 9.17% YoY) while cost of deposits is falling faster (5.21% vs 5.78% YoY), offering a temporary cushion. The drag from fee income and slower deposit growth suggests near-term revenue momentum may soften. Asset quality remains a clear strength (GNPA 1.52%, PCR 87.37%) and provides provisioning flexibility. Next quarter, focus on fee recovery and deposit granularity; any sustained QoQ dip in NII would challenge the 'record core earnings' narrative.
From investor presentation · AI-generated analysis · Not investment advice
🔒
Premium Feature
Investor Presentation One-Pager — quarterly highlights, what went right/wrong & management guidance
Upgrade to Premium
Already a member? Log in
📈 STRONG Net profit jumps 37% YoY, NIM expands to 8%.
Revenue
Revenue grew 9.9% YoY to ₹7,862 crore, but declined 1.1% sequentially. Other income was ₹1,082 crore.
Profitability
Net profit rose 36.9% YoY to ₹1,302 crore, with EPS at ₹5.09 versus ₹3.74. ROE stands at 11.6%, while tax rate is 25%.
Margins
Financing margin (NIM) improved to 8%, up from 7% in both Jun 2025 and Mar 2026, indicating better yield on advances.
Cash Flow
Skip — not applicable for banking/financial companies.
Balance Sheet
Detailed balance sheet data (deposits, advances, capital adequacy) not provided. PE ratio is 19.98, and ROE is 11.6%.
Key Risks
NIM expansion may be unsustainable if loan repricing slows. Asset quality trends are undisclosed. Regulatory changes or credit cost pressures could impact profitability.
Outlook
Strong YoY profit growth and NIM improvement signal robust business momentum. Sustained loan growth and stable asset quality will be key to maintaining performance.
Generated by AI · Jun 2026 results · Not investment advice
🔒
Free Account Required

Create a free Finmagine account to access Finmagine™ Scorecard.

See how this company scores across 5 dimensions — Financial Health, Growth Prospects, Competitive Position, Management Quality, and Valuation — powered by 30+ computed ratios.

Create Free AccountLog In
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Ask AI.

Get 25 expert AI analysis templates — Business KPIs, Comprehensive, Forensic Governance, Peer Comparison, Risk-Reward, Full Research Report, IPO Decoder, Red Flag Detector, and more — ready to paste into ChatGPT, Claude, Gemini, or Perplexity.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Peer Comparison.

Compare this company side-by-side against its sector peers with financial metrics, ratio benchmarking, and relative performance across all key dimensions.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Documents.

Access concall transcripts, annual reports, credit ratings, and investor presentations.

Upgrade to PremiumCreate Free Account

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
🔒
Premium Feature
Quarterly banking KPIs with historical trend — NIM, GNPA, CASA, CAR and more, AI-extracted from investor presentations
Upgrade to Premium
Already a member? Log in
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Full Report.

Read the complete Finmagine™ investment research report — comprehensive fundamental analysis, business model assessment, competitive positioning, and investment recommendation.

Upgrade to PremiumCreate Free Account

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯
Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.
📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This report does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a SEBI-registered investment adviser or other qualified financial professional before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This report may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. The author does not undertake any obligation to update such statements in the future.

Regulatory Compliance:
This report is intended to comply with the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, as amended, and other applicable Indian laws and regulations.

Limitation of Liability:
The content of this report is provided "as is" without any warranties, express or implied, including accuracy, completeness, merchantability, or fitness for a particular purpose. The author and publisher expressly disclaim any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.