Federal Bank Ltd’s fundamental analysis highlights key financial metrics: Market Cap of ₹49,654.88 crore, PE Ratio of 11.6, Debt to Equity of 0 and Return on Equity of 14.53%. These indicators reflect the company’s financial health and market valuation.
Federal Bank Ltd Overview
Federal Bank Ltd is an Indian banking company engaged in providing banking and financial services. It operates in the banking sector, offering retail banking, corporate banking, foreign exchange business and treasury operations.
The company is listed on both the NSE and BSE. With a market capitalisation of ₹49,654.88 crore, it’s currently 1.92% away from its 52-week high and 51.66% away from its 52-week low.
Federal Bank Financial Results
Federal Bank Ltd reported a significant rise in total income in FY 24 at ₹26,782 crores, compared to ₹20,248 crores in FY 23. The company continued its steady growth with improved profitability and a strengthened balance sheet.
1. Revenue Trend: Total income increased to ₹26,782 crores in FY 24 from ₹20,248 crores in FY 23, driven by a rise in net interest income and a stable NIM of 4%.
2. Equity and Liabilities: Equity capital stood at ₹487 crores in FY 24, with reserves rising to ₹29,618 crores from ₹21,699 crores. Total liabilities grew to ₹3,17,839 crores.
3. Profitability: Pre-provisioning operating profit grew to ₹5,521 crores in FY 24 from ₹5,062 crores in FY 23. Provisions decreased significantly, leading to a net profit of ₹3,964 crores.
4. Earnings per Share (EPS): EPS rose to ₹17 in FY 24, compared to ₹15 in FY 23, showing improved earnings for shareholders.
5. Return on Net Worth (RoNW): With higher profits, RoNW showed improved performance, supported by a strong equity base and reserve growth.
6. Financial Position: Advances increased to ₹2,18,110 crores in FY 24 from ₹1,81,957 crores in FY 23, while deposits rose to ₹2,52,455 crores, reflecting a solid financial position.
Federal Bank Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 26,782 | 20,248 | 16,502 |
| Total Expenses | 21,261 | 15,186 | 12,552 |
| Pre-Provisioning Operating Profit | 5,521 | 5,062 | 3,951 |
| PPOP Margin (%) | 20.61 | 25 | 23.94 |
| Provisions and Contingencies | 260 | 799 | 1,305 |
| Profit Before Tax | 5,261 | 4,263 | 2,646 |
| Tax % | 25 | 26 | 26 |
| Net Profit | 3,964 | 3,210 | 1,996 |
| EPS | 17 | 15 | 10 |
| Net Interest Income | 9,071 | 7,837 | 6,422 |
| NIM (%) | 4 | 4 | 4 |
| Dividend Payout % | 7.16 | 6.66 | 18.91 |
* Consolidated Figures in Rs. Crores
Federal Bank Company Metrics
Federal Bank Ltd’s company metrics include a market capitalization of ₹49,654.88 crore, a book value per share of ₹124 and a face value of ₹2. With a debt-to-equity ratio of 0, a return on equity of 14.53% and a 0.59% dividend yield, these figures underscore the company’s financial position and investment profile.
Market Capitalization: Market Capitalization represents the total market value of Federal Bank’s outstanding shares, amounting to ₹49,654.88 crore.
Book Value: The book value per share of Federal Bank is ₹124, indicating the value of the company’s net assets divided by its outstanding shares.
Face Value: The face value of Federal Bank’s shares is ₹2, which is the original cost of the shares as stated on the certificate.
Asset Turnover Ratio: The asset turnover ratio of 0.09 measures how efficiently the Federal Bank uses its assets to generate revenue.
Total Debt: The total debt is ₹0, indicating that the Federal Bank has no debt obligations.
Return on Equity (ROE): The ROE of 14.53% measures the Federal Bank’s profitability in generating income from its equity investments.
EBITDA (Q): The quarterly EBITDA of ₹1,404.34 crore represents the Federal Bank’s earnings before interest, taxes, depreciation and amortization.
Dividend Yield: The dividend yield of 0.59% shows the annual dividend payment as a percentage of the Federal Bank’s current share price, indicating the return on investment from dividends alone.
Federal Bank Ltd Stock Performance
Federal Bank Ltd delivered robust returns across different periods. Over one year, the return on investment was 29.6%, while over three years it was 33.1% and over five years it stood at 15.3%. These returns reflect the bank’s consistent growth trajectory.
| Period | Return on Investment (%) |
| 1 Year | 29.6 |
| 3 Years | 33.1 |
| 5 Years | 15.3 |
Example: If you had invested ₹1,000 in Federal Bank Ltd:
1 year ago, your investment would now be worth ₹1,296.
3 years ago, your investment would have grown to ₹1,331.
5 years ago, your investment would now be worth ₹1,153.
Federal Bank Ltd Peer Comparison
Federal Bank Ltd, with a current market price of ₹190.71 and a market cap of ₹46,756.56 Crores, shows a P/E ratio of 11.61 and an ROE of 14.84%. Its one-year return stands at 29.65%, outperforming peers like Kotak Mahindra Bank (7.3%) and Yes Bank (31.52%).
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| HDFC Bank | 1768.05 | 1348782.47 | 19.79 | 17.14 | 89.75 | 15.48 | 7.67 | 1.1 |
| ICICI Bank | 1318.6 | 929033.92 | 20.5 | 18.8 | 64.56 | 37.88 | 7.6 | 0.76 |
| Axis Bank | 1239.55 | 383400.44 | 14.34 | 18.4 | 86.63 | 21.65 | 7.06 | 0.08 |
| Kotak Mah. Bank | 1914.7 | 380665.34 | 20.42 | 15.06 | 108.22 | 7.3 | 7.86 | 0.1 |
| IndusInd Bank | 1448.3 | 112821.04 | 12.57 | 15.25 | 115.41 | 0.38 | 7.93 | 1.14 |
| IDBI Bank | 90.04 | 96814.63 | 15.38 | 11.77 | 5.85 | 27.18 | 6.23 | 1.67 |
| Yes Bank | 22.95 | 71941.1 | 49.46 | 3.18 | 0.49 | 31.52 | 5.83 | 0 |
| Federal Bank | 190.71 | 46756.56 | 11.61 | 14.84 | 16.67 | 29.65 | 6.93 | 0.63 |
Federal Bank Shareholding Pattern
Federal Bank Ltd has a diverse shareholding structure. As of June 2024, Foreign Institutional Investors (FIIs) hold 28.63%, slightly up from 28.57% in March 2024 but lower than 29.38% in December 2023. Domestic Institutional Investors (DIIs) hold 45.2%, while retail and others account for 26.17%.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| FII | 28.63 | 28.57 | 29.38 |
| DII | 45.2 | 45.40 | 44.70 |
| Retail & others | 26.17 | 26.04 | 25.92 |
Federal Bank History
Federal Bank Limited is a prominent banking institution in India, offering a comprehensive range of banking and financial services. The bank operates through three main segments: Treasury, Corporate/Wholesale Banking and Retail Banking, catering to diverse customer needs across various sectors.
The Treasury segment focuses on trading and investments in government securities, corporate debt instruments, equity, mutual funds, derivatives and foreign exchange operations. This segment serves both proprietary trading and customer-focused services, demonstrating the bank’s capability in financial markets.
In the Corporate/Wholesale Banking segment, Federal Bank provides lending services, deposit acceptance and other banking services to corporates, trusts, partnership firms and statutory bodies. The Retail Banking segment caters to individual customers and small businesses, offering a wide array of banking services. With a network of 1,391 branches and approximately 1,357 ATMs across India, Federal Bank has established a significant presence in the country’s banking sector.
How To Invest In Federal Bank Ltd Share?
To invest in Federal Bank shares, open a demat account with Alice Blue. Research the company’s fundamentals, financial performance and position in the banking sector. Analyze historical stock data and compare it with industry peers.
Determine your investment strategy based on your financial goals and risk tolerance. Consider factors such as the bank’s loan book quality, deposit growth and overall banking sector trends. Decide on the investment amount and timing.
Place your order through the broker’s platform. Regularly monitor your investment, staying updated on company news, quarterly results and banking industry trends. Consider seeking advice from a financial advisor for personalized guidance and to ensure your investment aligns with your overall portfolio strategy.
Federal Bank Limited Fundamental Analysis – FAQs
Federal Bank Ltd’s fundamental analysis reveals a Market Cap of ₹49,654.88 crore, PE Ratio of 11.6, Debt to Equity of 0 and Return on Equity of 14.53%. These metrics provide insights into the company’s financial health, profitability and market valuation.
Federal Bank Ltd’s market capitalization is ₹49,654.88 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current stock price by the number of outstanding shares.
Federal Bank Limited is an Indian banking company providing a wide range of banking and financial services. It operates through the Treasury, Corporate/Wholesale Banking and Retail Banking segments, offering services such as deposits, loans and foreign exchange operations.
Federal Bank Ltd is a public limited company owned by its shareholders. As a listed entity, ownership is distributed among various institutional and individual investors through stock market participation. There is no single majority owner.
The main shareholders of Federal Bank Ltd include institutional investors, mutual funds and public shareholders. For the most current and accurate information on major shareholders, refer to the bank’s latest shareholding pattern disclosure.
Federal Bank operates in the banking and financial services industry. The bank provides a range of services including retail banking, corporate banking, treasury operations and foreign exchange business, serving individual customers, businesses and institutions across India.
To invest in Federal Bank shares, open a demat account with Alice Blue. Research the bank’s performance and banking sector trends. Decide on your investment strategy. Place your order through the broker’s platform. Regularly monitor your investment, staying informed about market conditions. Consider seeking financial advice for personalized guidance.
Determining if the Federal Bank is overvalued or undervalued requires analyzing its financials, growth prospects, industry position and peer comparison. Consider factors like PE ratio, book value and banking sector trends. Consult recent analyst reports for expert opinions on the bank’s valuation.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
