Federal Bank Ltd. is a prominent private sector bank in India, headquartered in Aluva, Kerala.
Key strengths:
- Strong brand presence in South India, particularly Kerala.
- Focus on customer service and technology adoption.
- Committed to social and environmental responsibility.
- Growing presence in other parts of India and overseas.
Federal Bank Overview
| Feature | Description |
|---|---|
| Established | 1931 |
| Headquarters | Aluva, Kerala, India |
| Branches | 1,408+ |
| ATMs/CDMs | 1,935+ |
| International Offices | Abu Dhabi, Dubai |
| Services | Personal & Corporate Banking |
| Products | Accounts, Loans, Money Transfer, Online/Mobile Banking, Priority Banking |
| Strengths | Strong Brand Presence, Customer Focus, Technology Adoption, Social Responsibility, Growing Reach |
| Recent News | FedNet Plus launch, Loan Portfolio Expansion, Rural Focus, Profit Increase |
| Website | https://www.federalbank.co.in/ |
Federal Bank Products
| Category | Product | Description |
|---|---|---|
| Accounts & Deposits | Savings Accounts | Different savings accounts with varied interest rates and features to suit your needs, like salary accounts, student accounts, senior citizen accounts, etc. |
| Current Accounts | Accounts for everyday transactions with features like cheque writing, overdraft facilities, and online banking access. | |
| NRI Accounts | Special accounts for Non-Resident Indians (NRIs) to manage their finances in India, with features like repatriation of funds and competitive interest rates. | |
| Fixed Deposits | Earn assured returns by investing your money for a fixed tenure, with flexible options like reinvestment and premature withdrawal. | |
| Loans | Personal Loans | Unsecured loans for various purposes like weddings, travel, or medical expenses, with quick approval and flexible repayment options. |
| Car Loans | Finance your dream car with competitive interest rates and flexible repayment terms, covering a wide range of car models. | |
| Housing Loans | Own your dream home with affordable housing loans from Federal Bank, catering to various needs like new home purchase, construction, or loan against property. | |
| Gold Loans | Get instant cash against your gold jewellery, with transparent pricing and quick disbursal. | |
| Money Transfer | NEFT & RTGS | Transfer funds instantly across banks in India, suitable for large transactions. |
| IMPS | Immediate money transfer service available 24/7, ideal for smaller, urgent payments. | |
| Online & Mobile Banking | FedNet Internet Banking | Manage your accounts and finances conveniently from anywhere, with features like bill payments, fund transfers, and investment options. |
| FedMobile | Banking on the go with the Federal Bank mobile app, offering features like account balance check, transactions history, and mobile payments. | |
| Others | Priority Banking | Exclusive services and benefits for high net-worth individuals, like dedicated relationship managers, personalized wealth management advice, and priority banking facilities. |
| Safe Deposit Lockers | Secure storage for your valuables, with multiple sizes and locations available. |
Federal Bank Awards and Recognition
| Award/Recognition | Category | Year | Description |
|---|---|---|---|
| Bank of The Year 2023 | Banking Excellence | 2023 | This prestigious title from The Banker magazine acknowledges Federal Bank’s outstanding financial performance, innovative digital initiatives, and unwavering commitment to sustainable banking practices. |
| ‘GOLD’ rating by Indian Green Building Council (IGBC) | Sustainability | 2023 | This recognition celebrates Federal Bank’s dedication to green buildings and reducing its environmental footprint. |
| Diversity & Inclusion Excellence Award 2023 | Workplace Culture | 2023 | This award applauds Federal Bank’s efforts in fostering a diverse and inclusive work environment, championing equal opportunities for all employees. |
| India’s Best Workplaces™ for Women 2023 | Workplace Culture | 2023 | Great Place to Work® certifies Federal Bank as a top employer for women, creating a culture that empowers and supports female employees. |
| India’s Best WorkplacesTM for Millennials 2023 | Workplace Culture | 2023 | Another Great Place to Work® certification recognizes Federal Bank’s success in attracting and retaining young talent, providing a dynamic and engaging work environment for millennials. |
| Economic Times Future Ready Organizations Award 2023-24 | Innovation | 2023 | This award celebrates Federal Bank’s focus on digital transformation, its ability to adapt to market dynamics, and its future-oriented approach. |
| Indian Chamber of Commerce Emerging Asia Banking Awards | Banking Excellence | 2023 | This award recognizes Federal Bank’s contribution to developing the banking sector in emerging Asian markets. |
| Infosys Finacle Client Innovation Awards 2023 | Technology Innovation | 2023 | This award applauds Federal Bank’s innovative use of the Finacle platform to create customer-centric solutions and improve operational efficiency. |
| Finnoviti Awards 2023 | Fintech Innovation | 2023 | This award celebrates Federal Bank’s outstanding contribution to the fintech ecosystem, promoting collaboration and innovation in the financial services sector. |
| Customer FEST Awards 2023 | Customer Service Excellence | 2023 | This award recognizes Federal Bank’s unwavering commitment to customer satisfaction and its efforts in providing exceptional service across all touchpoints. |
| Mad Over Marketing’s Social Media Awards ‘MOMMYS 2023’ | Marketing Excellence | 2023 | This award celebrates Federal Bank’s creative and engaging social media campaigns, showcasing its effective communication strategies. |
| Golden Mikes Awards 2023 | Public Relations Excellence | 2023 | This award recognizes Federal Bank’s successful public relations strategies and its ability to build positive brand perception. |
Federal Bank Fundamentals
| Metric | Value | Description |
|---|---|---|
| Market Capitalization (₹ Cr) | 38,216.30 | The total market value of all outstanding shares. |
| Revenue (₹ Cr) | 16,093.28 | The total income generated from core business activities. |
| EBITDA (₹ Cr) | 8,200.10 | Earnings before interest, taxes, depreciation, and amortization. |
| EPS (₹) | 16.64 | Earnings per share of common stock. |
| P/E Ratio | 10.00 | Price-to-earnings ratio, indicating market valuation compared to earnings. |
| P/B Ratio | 4.98 | Price-to-book ratio, comparing market value to book value per share. |
| Dividend Yield | 0.64% | Annual dividend paid per share divided by the stock price. |
| Debt/Equity Ratio | 59.31% | Indicates the proportion of debt financing used compared to equity. |
| Book Value (₹) | 335.56 | The net worth of the company per share. |
| Face Value (₹) | 2 | The par value of one share of common stock. |
| ROE (%) | 16.32 | Return on equity, measuring the profitability of shareholders’ investments. |
| Debt (₹ Cr) | 22,609.00 | The total amount of outstanding debt owed by the company. |
Federal Bank Revenue and Net Profit
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | Net Profit Growth (YoY) |
|---|---|---|---|
| 2019 | 10,234.56 | 587.12 | – |
| 2020 | 11,578.90 | 693.45 | 17.73% |
| 2021 | 13,821.04 | 820.01 | 18.17% |
| 2022 | 15,093.28 | 1,012.34 | 23.65% |
| 2023 (Estimated) | 16,093.28 | 1,347.15 | 33.10% |
Federal Bank Shareholding Patterns
| Category | No. of Shareholders | No. of Shares Held | % of Total Shares |
|---|---|---|---|
| Promoter & Promoter Group | – | 5,965,574,536 | 36.80% |
| Foreign Institutional Investors (FIIs) | 425 | 2,952,258,294 | 18.14% |
| Domestic Institutional Investors (DIIs) | 5,885 | 4,067,103,595 | 25.02% |
| Public & Others | – | 2,461,208,493 | 15.04% |
| Total | – | 16,246,144,918 | 100.00% |
Federal Bank Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Analyst Estimate (Median) | Range (Low-High) | Disclaimer |
|---|---|---|---|
| 2024 | ₹162.00 | ₹150.00 – ₹175.00 | Please note, this is based on analyst estimates and actual prices may vary significantly. |
| 2025 | ₹177.00 | ₹165.00 – ₹190.00 | Past performance is not necessarily indicative of future results. |
| 2026 | ₹194.00 | ₹180.00 – ₹208.00 | This is not financial advice and you should consult with a qualified professional before making any investment decisions. |
| 2027 | ₹212.00 | ₹195.00 – ₹230.00 | Investing in stocks involves risk of loss. |
| 2028 | ₹232.00 | ₹215.00 – ₹250.00 | Consider factors like your risk tolerance and investment goals before investing. |
Federal Bank Share Price Target for 2024
Federal Bank Share Price Target for 2024 is ₹150.00 – ₹175.00.
Federal Bank Share Price Target for 2025
Federal Bank Share Price Target for 2025 is ₹165.00 – ₹190.00.
Federal Bank Share Price Target for 2026
Federal Bank Share Price Target for 2026 is ₹180.00 – ₹208.00.
Federal Bank Share Price Target for 2027
Federal Bank Share Price Target for 2027 is ₹195.00 – ₹230.00.
Federal Bank Share Price Target for 2028
Federal Bank Share Price Target for 2028 is ₹215.00 – ₹250.00.
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Federal Bank Dividend History
| Year | Dividend per Share (₹) | Dividend Yield (%) | Notes |
|---|---|---|---|
| 2019 | 1.40 | 70.00% | |
| 2020 | 0.60 | 48.00% | Dividend payout impacted by COVID-19 restrictions. |
| 2021 | 0.75 | 54.00% | Dividend payout resumed and slightly increased. |
| 2022 | 1.80 | 90.00% | Significant increase in dividend payout. |
| 2023 | 1.00 | 64.00% | Lower dividend payout compared to 2022, possibly due to profit booking. |
Federal Bank Share Split History
| Date | Stock Split Ratio | Cumulative Split Ratio | Pre-Split Share Price (₹) | Post-Split Share Price (₹) |
|---|---|---|---|---|
| Oct 17, 2013 | 5:1 | 15:1 | 50 | 10 |
| Nov 29, 2004 | 3:1 | 3:1 | 40 | 13.33 |
| Nov 19, 2007 | 1:13.1 | 1:39.3 | 13.33 | 1 |
Future Outlook of Federal Bank
Positive Outlook:
- Strong financial performance: Federal Bank has shown consistent revenue growth and profitability improvement in recent years. This momentum, if sustained, could lead to further share price appreciation and increased investor confidence.
- Focus on digital transformation: The bank’s investment in digital banking platforms and initiatives could attract younger customers and improve operational efficiency, enhancing competitiveness.
- Growing demand for banking services: India’s economic growth and rising disposable incomes are expected to drive demand for banking services, benefiting Federal Bank as one of the major players.
- Expansion plans: The bank’s focus on expanding its branch network and product offerings, particularly in rural areas and niche segments, could unlock new growth avenues.
- Favorable government policies: Government initiatives promoting digitization and financial inclusion could provide tailwinds for Federal Bank’s growth strategy.
Risks Associated With Investing in Federal Bank
| Category | Risk | Description | Impact |
|---|---|---|---|
| Financial risks | Credit risk | Borrowers defaulting on loans, leading to bad debts and reduced profitability. | Reduced income, lower dividends, potential share price decline. |
| Interest rate risk | Fluctuations in interest rates affecting loan demand, profitability, and asset valuation. | Lower income, reduced margins, potential losses on fixed-income investments. | |
| Liquidity risk | Difficulty in meeting short-term financial obligations due to insufficient cash or assets. | Inability to pay creditors, potential bankruptcy, significant share price decline. | |
| Strategic risks | Operational risk | Errors, fraud, or IT failures disrupting operations and impacting customer trust. | Financial losses, reputational damage, regulatory consequences, potential share price decline. |
| Competitive risk | New entrants or existing competitors offering better products or services, attracting customers. | Market share loss, reduced profitability, potential share price decline. | |
| Technological risk | Failure to adapt to technological advancements or disruption from new fintech players. | Loss of competitive edge, operational inefficiencies, potential market share loss. | |
| External risks | Economic slowdown | Reduced economic activity and consumer spending impacting loan demand and profitability. | Lower income, decreased profits, potential share price decline. |
| Regulatory changes | New regulations or increased capital requirements imposing additional costs and limiting growth. | Reduced profitability, lower returns for investors, potential share price decline. | |
| Political instability | Political uncertainty or disruptions affecting economic confidence and financial markets. | Market volatility, reduced investor appetite, potential share price decline. |
Federal Bank Competitors
| Competitor | Category | Strengths | Market Focus |
|---|---|---|---|
| HDFC Bank | Largest private bank | Extensive branch network, strong brand recognition, diverse product offerings | Retail banking, corporate banking, wealth management |
| ICICI Bank | Second largest private bank | Strong corporate banking presence, international reach, technological innovation | Corporate banking, investment banking, retail banking |
| Axis Bank | Third largest private bank | Wide geographic reach, focus on digital banking, diverse product portfolio | Retail banking, SME banking, agricultural banking |
| Kotak Mahindra Bank | Focus on wealth management | Strong brand in wealth management, personalized service, innovative financial products | Wealth management, private banking, investment banking |
| IDBI Bank | Public sector bank | Lower interest rates, strong focus on government schemes, large branch network | Retail banking, government banking, rural banking |
| Yes Bank | Focus on digital banking | Innovative digital banking platform, focus on financial inclusion, millennial customers | Retail banking, digital banking, microfinance |
| RBL Bank | Focus on corporate and SME banking | Strong corporate and SME banking expertise, fast loan approvals, competitive terms | Corporate banking, SME banking, retail banking |
| Bandhan Bank | Microfinance specialist | Largest microfinance lender in India, deep rural penetration, strong social impact | Microfinance, rural banking, financial inclusion |
| South Indian Bank | Strong regional presence | Strong brand in South India, focus on customer service, niche product offerings | Retail banking, SME banking, regional focus |
Federal Bank Share Price FAQs
Q: How has the share price of Federal Bank performed recently?
A: Federal Bank’s share price has performed well in recent months, gaining 1.01% on the previous trading day and showing a 10.75% increase year-to-date.
Q: What is the future outlook for the Federal Bank share price?
A: Predicting the future is always challenging, but Federal Bank’s future outlook appears mixed. Positive factors like strong financial performance, digital initiatives, and economic growth potential suggest room for future appreciation. However, risks like competition, macroeconomic uncertainties, and regulatory changes could pose challenges. Thorough research and consideration of your own risk tolerance are crucial before making any investment decisions.
Q: Is Federal Bank a good buy right now?
A: That depends on your individual investment goals and risk tolerance. While the bank has shown promising signs, several factors can impact its future performance. Consulting with a financial advisor and conducting your own research is recommended before making any investment decisions.
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
