| Parameter | Value |
|---|
| Company Name | Federal Bank Ltd |
| NSE Symbol | FEDERALBNK |
| Sector | Private Banking |
| Market Capitalization | ₹69,000–72,000 Cr |
| Current Price | ₹280–295 |
| 52-Week High | ₹302 |
| 52-Week Low | ₹175–185 |
| P/E Ratio | 16–18 |
| Book Value | ₹147–157 |
| Price to Book (P/B) | 1.8–2.0 |
| Dividend Yield | 0.4% |
| Face Value | ₹2 |
| ROE | 11–13% |
| ROA | 1.0–1.2% |
| CRAR | 16%+ |
| CASA Ratio | 32%+ |
| Gross NPA | 1.7–1.9% |
| Net NPA | 0.4–0.5% |
Federal Bank has maintained strong asset quality with Gross NPA below 2%, Net NPA below 0.5%, and capital adequacy above 16%, making it one of the healthier mid-sized private sector banks in India.
Financial Performance
| Financial Year | Revenue (₹ Cr) | Net Profit (₹ Cr) |
|---|
| FY2022 | 14,000+ | 1,890+ |
| FY2023 | 17,800+ | 3,010+ |
| FY2024 | 23,500+ | 3,720+ |
| FY2025 | 26,000+ | 4,052 |
FY2025 was a record year with annual net profit crossing ₹4,000 crore and total business exceeding ₹5.18 lakh crore.
Banking Strengths
| Strength | Details |
|---|
| Strong Asset Quality | Among the lowest NPAs in the banking sector |
| Consistent Profit Growth | Profit growth over the last several years |
| Healthy Capital Position | CRAR above regulatory requirements |
| Digital Banking Focus | Strong growth in retail and digital banking |
| Stable Deposit Franchise | CASA ratio above 32% |
Key Risks
| Risk | Impact |
|---|
| Interest Rate Cycles | Can affect NIM and profitability |
| Banking Competition | Competition from large private banks |
| Economic Slowdown | Credit growth may moderate |
| Regulatory Changes | Banking sector remains highly regulated |
Investment Scorecard
| Metric | Rating |
|---|
| Profit Growth | ⭐⭐⭐⭐☆ |
| Asset Quality | ⭐⭐⭐⭐⭐ |
| Capital Adequacy | ⭐⭐⭐⭐⭐ |
| Valuation | ⭐⭐⭐⭐☆ |
| Dividend | ⭐⭐⭐☆☆ |
| Long-Term Potential | ⭐⭐⭐⭐☆ |
Key FY2025 Highlights
| Metric | FY2025 |
|---|
| Total Business | ₹5.18 Lakh Cr |
| Net Profit | ₹4,052 Cr |
| GNPA | 1.84% |
| NNPA | 0.44% |
| ROE | 12.82% |
| CRAR | 16.40% |
These figures reflect one of the best asset-quality profiles in the Indian banking sector along with double-digit profit growth.
Verdict
Federal Bank is a fundamentally strong private-sector bank with improving profitability, low NPAs, solid capital adequacy, and reasonable valuation compared with larger banking peers. It is often considered a good long-term banking stock for investors seeking a balance between growth and stability
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