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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 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
₹274.00
▲(6.22% Upside)
Federal Bank Ltd. shows strong profitability and operational efficiency, but faces significant challenges with declining revenue growth and negative cash flow trends. The technical analysis indicates strong bullish momentum, though overbought conditions suggest caution. The valuation is fair, providing a balanced view of the stock's potential.
Positive Factors
Profitability and Margins
The bank's high net profit and EBIT margins indicate strong operational efficiency, which supports sustainable profitability and competitive positioning in the long term.
Balance Sheet Stability
A stable balance sheet with moderate leverage provides financial flexibility and resilience, enabling the bank to withstand economic fluctuations and invest in growth opportunities.
Operational Efficiency
Strong operational efficiency, as reflected in high profit margins, supports the bank's ability to generate consistent earnings and reinvest in business expansion and innovation.
Negative Factors
Revenue Growth Decline
A significant decline in revenue growth poses a risk to the bank's long-term financial health, potentially impacting its ability to invest in new initiatives and maintain market competitiveness.
Negative Cash Flow Trends
Negative cash flow trends highlight potential liquidity issues, which could constrain the bank's operational capabilities and limit its ability to respond to market opportunities or challenges.
Earnings Growth Challenges
Negative EPS growth indicates difficulties in enhancing shareholder value and may reflect underlying operational or market challenges that need addressing for sustainable growth.

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

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

Company DescriptionFederal Bank Ltd. is a major private sector bank in India, headquartered in Kochi, Kerala. Established in 1945, the bank provides a wide range of financial products and services, including personal banking, corporate banking, and treasury services. Federal Bank operates through a robust network of branches and ATMs across India, catering to the banking needs of retail customers, small and medium enterprises, and large corporates. The bank focuses on delivering innovative solutions in areas such as digital banking, wealth management, and loan products, enhancing customer experience and convenience.
How the Company Makes MoneyFederal Bank generates revenue primarily through the interest income earned on loans and advances provided to customers. The bank lends to various sectors, including retail, agriculture, and corporate clients, which contributes significantly to its overall earnings. Additionally, Federal Bank earns non-interest income through fees and commissions from services like account maintenance, transaction charges, and wealth management advisory services. The bank also invests in government and corporate securities, which provide interest income. Strategic partnerships with fintech companies and technology providers enhance its digital offerings and customer reach, further contributing to its revenue streams.

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 Revenue325.31B318.79B266.25B202.54B165.02B162.03B
Gross Profit145.71B142.48B121.30B102.79B85.43B77.68B
EBITDA54.86B59.09B55.31B44.45B27.85B23.23B
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 Price257.95
Price Trends
50DMA
222.56
Positive
100DMA
211.36
Positive
200DMA
202.65
Positive
Market Momentum
MACD
8.94
Negative
RSI
79.23
Negative
STOCH
89.76
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 257.95 is above the 20-day moving average (MA) of 243.17, above the 50-day MA of 222.56, and above the 200-day MA of 202.65, indicating a bullish trend. The MACD of 8.94 indicates Negative momentum. The RSI at 79.23 is Negative, neither overbought nor oversold. The STOCH value of 89.76 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
₹646.71B6.712.75%14.34%20.97%
69
Neutral
₹656.79B30.150.11%30.73%14.02%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
68
Neutral
₹719.42B25.355.15%52.75%
64
Neutral
₹578.77B14.800.47%10.62%-5.21%
61
Neutral
₹595.14B42.690.31%14.45%-41.85%
45
Neutral
₹151.47B47.22-12.62%175.71%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:FEDERALBNK
Federal Bank Ltd. (India)
257.95
48.52
23.17%
IN:AUBANK
AU Small Finance Bank Limited
955.45
373.02
64.05%
IN:BANKINDIA
Bank of India
147.05
40.42
37.91%
IN:IDFCFIRSTB
IDFC First Bank Ltd.
80.13
16.30
25.54%
IN:IFCI
IFCI Limited
50.95
-12.87
-20.17%
IN:YESBANK
Yes Bank Limited
22.93
2.96
14.82%

Federal Bank Ltd. (India) Corporate Events

Federal Bank Allots Equity Shares Under Employee Stock Option Scheme
Nov 22, 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 185,758 equity shares have been allotted, with 5,500 shares under the ESOS 2010 Scheme and 180,258 shares under the ESOS 2017 Scheme. This move reflects the bank’s commitment to rewarding its employees and could potentially enhance employee motivation and retention, thereby positively impacting the bank’s operations and market position.

Federal Bank Ltd. Holds Virtual Extraordinary General Meeting
Nov 19, 2025

Federal Bank Ltd. recently conducted its Extraordinary General Meeting (EGM) on November 19, 2025, through video conferencing, in compliance with regulatory guidelines. The meeting, chaired by Independent Director A P Hota, included the participation of several key directors and focused on various strategic committees, reflecting the bank’s ongoing commitment to governance and operational excellence.

Federal Bank Ltd. Announces Equity Share Allotment Under ESOS
Nov 15, 2025

Federal Bank Ltd. has announced the allotment of equity shares following the exercise of stock options under its Employee Stock Option Schemes (ESOS) of 2010 and 2017. A total of 199,166 equity shares were allotted, which reflects the bank’s ongoing commitment to employee incentives and its strategy to enhance employee engagement and retention.

Federal Bank Ltd. Allots Equity Shares Under ESOS
Nov 9, 2025

Federal Bank Ltd. has announced the allotment of equity shares following the exercise of stock options under its Employee Stock Option Schemes (ESOS) of 2010 and 2017. This move, approved by the bank’s Nomination, Remuneration, Ethics, and Compensation Committee, results in the issuance of a total of 282,444 equity shares, potentially impacting the company’s capital structure and providing incentives for employee retention and motivation.

Federal Bank Ltd. Engages in Analyst and Investor Meet
Nov 7, 2025

Federal Bank Ltd. announced the schedule of an analyst and investor meet, which took place virtually with Franklin Templeton on November 07, 2025. The meeting did not include any presentations, and the bank has complied with SEBI regulations in disclosing this information, indicating transparency and engagement with stakeholders.

Federal Bank Engages with Lazard Asset Management in Mumbai Meeting
Nov 6, 2025

Federal Bank Ltd. announced a scheduled meeting with Lazard Asset Management, which took place as a one-on-one physical meeting in Mumbai. This meeting, part of the bank’s ongoing engagement with analysts and investors, reflects its commitment to transparency and maintaining strong relationships with stakeholders, although no presentations were made during the session.

Federal Bank Announces Analyst and Investor Meet Schedule
Nov 5, 2025

Federal Bank Ltd. has announced the schedule of an analyst and investor meet held on November 5, 2025, as part of its compliance with SEBI regulations. The meeting, which was a one-on-one virtual session with William Blair, did not include any presentations, indicating a focus on direct communication and engagement with stakeholders.

Federal Bank Allots Equity Shares Under Employee Stock Option Scheme
Nov 2, 2025

Federal Bank Ltd. has announced the allotment of equity shares following the exercise of stock options under its Employee Stock Option Schemes (ESOS) of 2010 and 2017. A total of 398,444 equity shares were allotted, indicating the bank’s commitment to rewarding its employees and potentially enhancing employee engagement and retention. This move reflects the bank’s strategic focus on aligning employee interests with company performance, which could positively impact its operational efficiency and market positioning.

Federal Bank Ltd. Updates Website Domain to Comply with RBI Guidelines
Oct 31, 2025

Federal Bank Ltd. has announced a change in its website domain from www.federalbank.co.in to www.federal.bank.in, in compliance with the Reserve Bank of India’s directive for banks to migrate to the ‘.bank.in’ domain. This transition, effective from October 31, 2025, is aimed at enhancing security and aligning with regulatory requirements, ensuring a seamless experience for stakeholders as they will be automatically redirected to the new domain.

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.

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: Nov 26, 2025