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Federal Bank Ltd. (India) (IN:FEDERALBNK)
:FEDERALBNK
India Market
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Federal Bank Ltd. (India) (FEDERALBNK) AI Stock Analysis

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IN:FEDERALBNK

Federal Bank Ltd. (India)

(FEDERALBNK)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
₹246.00
▲(3.67% Upside)
Federal Bank Ltd. scores well due to strong technical indicators and a stable valuation. However, the financial performance is hindered by declining revenue growth and negative cash flow trends, which are significant risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Federal Bank Ltd. (India) (FEDERALBNK) vs. iShares MSCI India ETF (INDA)

Federal Bank Ltd. (India) Business Overview & Revenue Model

Company DescriptionThe Federal Bank Limited provides a range of banking and financial services in India. It operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company's deposit products include savings accounts, current accounts, noor personal accounts, demat accounts, salary accounts, fixed deposits, cash certificates, recurring deposits, exchange earners' foreign currency accounts, gilt accounts, and NRI deposit schemes. Its loan portfolio comprises personal, gold, housing, car, property, educational and career, instant digital, SME business, agri and agri allied, and other loans; loans against sovereign gold bonds and fixed deposit; term loans, project finance, and working capital loans; and debit and credit cards. The company also provides life, health, and general insurance products; cash management, wealth management, and merchant banking services; mutual funds, sovereign gold bonds, online trading, and national pension system; treasury products; and remittance, fund transfer, payment and collection, bill discounting, bank guarantees, letter of credit, packing credit limit, trade finance, LC bill discounting, internet banking, mobile banking, ATM, and tele banking services. As of March 31, 2022, The Federal Bank Limited operated 1,282 branches and 1,885 ATMs/recyclers. The company was formerly known as Travancore Federal Bank Limited and changed its name to The Federal Bank Limited in March 1947. The Federal Bank Limited was incorporated in 1931 and is based in Aluva, India.
How the Company Makes MoneyFederal Bank generates revenue primarily through the interest earned on loans and advances provided to customers, which forms the bulk of its income. The bank offers various loan products, including personal loans, home loans, vehicle loans, and business loans, charging interest at differing rates based on risk and market conditions. In addition to interest income, the bank earns fee-based income from services such as account maintenance fees, transaction fees, and commissions on financial products like insurance and mutual funds. The bank also engages in treasury operations, generating income through investments in government securities and bonds. Significant partnerships with financial institutions and technology companies enhance its service offerings and customer base, contributing to its overall earnings.

Federal Bank Ltd. (India) Financial Statement Overview

Summary
Federal Bank Ltd. shows strong profitability and operational efficiency with high net profit and EBIT margins. However, the significant decline in revenue growth and negative cash flow trends pose risks to its financial health. The balance sheet remains stable with moderate leverage, but cash flow challenges need addressing.
Income Statement
65
Positive
Federal Bank Ltd. has shown strong profitability with consistent gross profit margins of 100% over the years. However, the recent revenue growth rate has been negative at -38.9%, indicating a significant decline in revenue. Despite this, the bank maintains a healthy net profit margin of 30.85% and an EBIT margin of 41.45%, showcasing strong operational efficiency. The decline in revenue growth is a concern and affects the overall score.
Balance Sheet
70
Positive
The bank's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.94, indicating moderate leverage. The return on equity stands at 12.04%, which is respectable, demonstrating effective use of equity to generate profits. The equity ratio is not explicitly provided, but the overall stability and moderate leverage contribute positively to the score.
Cash Flow
40
Negative
The cash flow statement reveals significant challenges, with negative operating cash flow and free cash flow in the most recent period. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow covers net income, but the negative growth in free cash flow is concerning. The operating cash flow to net income ratio is negative, highlighting cash flow management issues.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue326.82B320.30B120.28B202.54B72.38B61.07B
Gross Profit147.23B143.99B122.78B102.73B85.43B61.07B
EBITDA54.53B58.76B54.95B44.45B27.85B23.23B
Net Income40.50B41.59B38.80B31.65B19.70B16.64B
Balance Sheet
Total Assets0.003.60T3.18T2.68T2.26T2.05T
Cash, Cash Equivalents and Short-Term Investments0.00315.97B86.53B78.84B328.98B289.95B
Total Debt0.00325.96B251.60B258.62B195.87B154.20B
Total Liabilities-354.53B3.25T2.87T2.46T2.07T1.88T
Stockholders Equity354.53B345.38B301.05B221.22B192.56B165.02B
Cash Flow
Free Cash Flow0.00-229.82B70.49B52.80M-80.69B110.48B
Operating Cash Flow0.00-222.28B73.77B4.89B-77.74B111.78B
Investing Cash Flow0.00-37.94B-89.08B-98.44B9.08B-39.14B
Financing Cash Flow0.00384.30B433.37B60.38B81.93B197.27B

Federal Bank Ltd. (India) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price237.30
Price Trends
50DMA
206.97
Positive
100DMA
205.94
Positive
200DMA
198.28
Positive
Market Momentum
MACD
9.46
Negative
RSI
78.28
Negative
STOCH
83.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FEDERALBNK, the sentiment is Positive. The current price of 237.3 is above the 20-day moving average (MA) of 226.09, above the 50-day MA of 206.97, and above the 200-day MA of 198.28, indicating a bullish trend. The MACD of 9.46 indicates Negative momentum. The RSI at 78.28 is Negative, neither overbought nor oversold. The STOCH value of 83.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:FEDERALBNK.

Federal Bank Ltd. (India) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
₹646.71B6.712.80%14.34%20.97%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
68
Neutral
₹710.01B25.285.15%52.75%
66
Neutral
₹578.77B14.800.51%10.62%-5.21%
61
Neutral
₹595.14B42.690.31%14.45%-41.85%
52
Neutral
₹151.47B47.22-4.18%105.31%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:FEDERALBNK
Federal Bank Ltd. (India)
237.30
31.80
15.47%
IN:AUBANK
AU Small Finance Bank Limited
908.50
328.57
56.66%
IN:BANKINDIA
Bank of India
144.60
36.96
34.34%
IN:IDFCFIRSTB
IDFC First Bank Ltd.
81.52
16.08
24.57%
IN:IFCI
IFCI Limited
54.24
-7.37
-11.96%
IN:YESBANK
Yes Bank Limited
22.87
2.70
13.39%

Federal Bank Ltd. (India) Corporate Events

Federal Bank Plans Capital Infusion via Preferential Issue
Oct 26, 2025

Federal Bank Ltd. has announced an Investor/Analyst call to discuss the proposed issuance of warrants through a preferential issue to funds managed by Blackstone. This move, approved by the Board, aims to infuse capital up to ₹6,196.5 crores, enhancing the bank’s financial strength and potentially impacting its market positioning, pending shareholder and regulatory approvals.

Federal Bank Releases Earnings Call Transcript for Q2 FY26
Oct 25, 2025

Federal Bank Ltd. has released the transcript of its earnings call for the consolidated and standalone unaudited financial results for the quarter and half year ended September 30, 2025. This announcement provides stakeholders with insights into the bank’s financial performance during this period, potentially impacting its market positioning and operational strategies.

Federal Bank Approves Strategic Investment and Governance Enhancement
Oct 24, 2025

Federal Bank Ltd. announced the approval of a preferential issue of warrants to Asia II Topco XIII Pte. Ltd., allowing the investor to subscribe to equity shares, subject to regulatory approvals. This strategic move, which includes granting the investor the right to nominate a director, aims to strengthen the bank’s capital base and enhance its governance structure, potentially impacting its market positioning and stakeholder interests.

Federal Bank Announces Preferential Issue and Strategic Investor Rights
Oct 24, 2025

Federal Bank Ltd. has announced the issuance of warrants through a preferential issue on a private placement basis, subject to necessary approvals. This strategic move involves issuing over 27 crore warrants to Asia II Topco XIII Pte. Ltd., allowing the investor to subscribe to equity shares, potentially raising significant capital for the bank. Additionally, the bank’s board has approved granting a special right to the investor to nominate a non-executive director, contingent on certain conditions. An Extra Ordinary General Meeting is scheduled to seek shareholder approval for these initiatives, which could impact the bank’s governance and capital structure.

Federal Bank Ltd. Announces Q2 2025 Financial Results
Oct 19, 2025

Federal Bank Ltd. has released its unaudited financial results for the quarter and half-year ending September 30, 2025. The results, published in both English and Malayalam newspapers, reflect the bank’s ongoing commitment to transparency and regulatory compliance. This announcement is likely to impact the bank’s stakeholders by providing insights into its financial health and operational performance.

Federal Bank Ltd. Allots Equity Shares Under Employee Stock Option Scheme
Oct 12, 2025

Federal Bank Ltd. has announced the allotment of equity shares following the exercise of stock options under its Employee Stock Option Scheme. A total of 54,157 equity shares were allocated, with 3,000 shares under the ESOS 2010 Scheme and 51,157 shares under the ESOS 2017 Scheme. This move reflects the bank’s commitment to rewarding its employees and aligning their interests with the company’s growth, potentially enhancing employee motivation and retention.

Federal Bank Ltd. Confirms Compliance with SEBI Regulations for Q3 2025
Oct 6, 2025

Federal Bank Ltd. has submitted a compliance certificate to the National Stock Exchange of India and BSE Limited, confirming adherence to Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This announcement underscores the bank’s commitment to regulatory compliance, ensuring that securities received for dematerialization are processed and recorded accurately, which is crucial for maintaining trust with stakeholders and ensuring smooth operations in the securities market.

Federal Bank Ltd. Schedules Investor Call for Q2 FY 2026 Results
Oct 5, 2025

Federal Bank Ltd. has announced an upcoming investor and analyst conference call to discuss its unaudited financial results for the second quarter and half-year ending September 30, 2025. The call, scheduled for October 18, 2025, will provide insights into the bank’s performance and business updates, potentially impacting stakeholders’ perceptions and the bank’s market positioning.

Federal Bank Ltd. Announces Trading Window Closure Ahead of Financial Results
Sep 29, 2025

Federal Bank Ltd. announced the closure of its trading window for dealing in securities, in compliance with SEBI regulations and its internal Code of Conduct. This measure affects designated persons, including directors and key managerial personnel, and will be in effect from October 1, 2025, until 48 hours after the announcement of the bank’s unaudited financial results for the quarter and half-year ending September 30, 2025. This move is part of the bank’s efforts to ensure fair disclosure and prevent insider trading, reflecting its commitment to regulatory compliance and transparency.

Federal Bank Ltd. Announces Allotment of Equity Shares Under ESOS
Sep 20, 2025

Federal Bank Ltd. announced the allotment of equity shares following the exercise of stock options under its Employee Stock Option Scheme. The allotment includes 9,675 shares under the ESOS 2010 Scheme and 97,340 shares under the ESOS 2017 Scheme, indicating the bank’s ongoing commitment to employee incentives and engagement.

Federal Bank Divests Stake in Yes Bank to SMBC
Sep 17, 2025

Federal Bank Ltd. has announced the sale of 16,62,73,472 shares of Yes Bank Limited to Sumitomo Mitsui Banking Corporation (SMBC) for Rs. 21.50 per share. This transaction, following regulatory approvals and conditions outlined in a previous agreement, reflects Federal Bank’s strategic decision to divest its stake in Yes Bank, potentially impacting its investment portfolio and market positioning.

Federal Bank Ltd. Hosts Analyst and Investor Meetings at Elara India Dialogue Conference
Sep 2, 2025

Federal Bank Ltd. announced the schedule of its analyst and investor meetings held on September 2, 2025, at the Elara India Dialogue Conference in Mumbai. The meetings were attended by various financial entities, including asset management companies, insurance firms, and investment managers. No presentations were made during these meetings, indicating a focus on direct discussions with stakeholders, potentially impacting the bank’s investor relations and market positioning.

Federal Bank Engages with Investors at Elara India Dialogue Conference
Sep 2, 2025

Federal Bank Ltd. announced a one-on-one meeting with ASK Investment Managers at the Elara India Dialogue Conference on September 2, 2025. This meeting, held physically in Mumbai, signifies the bank’s ongoing efforts to engage with investors and analysts, potentially impacting its market positioning and stakeholder relations.

Federal Bank Allots Equity Shares Under ESOS 2017
Aug 23, 2025

Federal Bank Ltd. has announced the allotment of 149,310 equity shares following the exercise of stock options under its Employee Stock Option Scheme 2017. This move, approved by the Nomination, Remuneration, Ethics, and Compensation Committee, reflects the bank’s commitment to rewarding its employees and could enhance employee engagement and retention, potentially impacting its operational efficiency and market position positively.

Federal Bank Ltd. Announces Analyst/Investor Meeting Schedule
Aug 22, 2025

Federal Bank Ltd. announced the schedule of its Analyst/Investor meetings held on August 22, 2025, in compliance with SEBI regulations. The meetings, which included one-on-one sessions with VT Capital, Tara Capital, and Kapoor Stock Broking Pvt Ltd, were conducted without any presentations. This initiative reflects the bank’s commitment to maintaining transparency and open communication with its stakeholders, potentially enhancing investor confidence and market positioning.

Federal Bank Schedules Analyst and Investor Meeting
Aug 8, 2025

Federal Bank Ltd. has announced a scheduled analyst and investor meeting on August 13, 2025, at the Emkay Conference 2025 in Mumbai. The meeting, which will not include presentations, is part of the bank’s ongoing efforts to maintain transparency and communication with stakeholders, aligning with SEBI’s disclosure requirements.

Federal Bank Ltd. Releases Q1 2025 Financial Results
Aug 3, 2025

Federal Bank Ltd. has announced the publication of its unaudited financial results for the quarter ending June 30, 2025. These results have been published in prominent newspapers and are available on the bank’s website, reflecting the bank’s commitment to transparency and regulatory compliance. This announcement is significant for stakeholders as it provides insights into the bank’s financial health and operational performance for the specified period.

Federal Bank Ltd. Allots Equity Shares Under ESOS 2017
Jul 31, 2025

Federal Bank Ltd. has announced the allotment of 168,223 equity shares following the exercise of stock options under its Employee Stock Option Scheme (ESOS) 2017. This move, approved by the Nomination, Remuneration, Ethics and Compensation Committee, reflects the bank’s commitment to rewarding its employees and could potentially enhance employee motivation and retention, thereby positively impacting the bank’s operational efficiency and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025