HDFC Bank Limited
NSE: HDFCBANK
Financial Services · Banks - Regional
₹692.80 last close on 23 Oct 2026 −0.18%
Research updated
Federal Bank Ltd.
NSE: FEDERALBNKFinancial ServicesBanks - Regional
- Last close
- ₹340.90
- Day change
- −₹6.90 (−1.98%)vs
- Market cap
- ₹82,758 crIndian rupees
- Research updated
- 3 reports
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About Federal Bank
Federal Bank Ltd. is a prominent commercial banking entity in India, recognized for its diversified range of financial products and services. The primary function of Federal Bank is to provide banking facilities such as personal loans, savings and current accounts, credit cards, and investment options like fixed deposits. It plays a significant role in catering to both retail and corporate clients, contributing to financial accessibility in rural and urban areas alike. Federal Bank is notable for its digital banking initiatives, offering comprehensive online platforms and mobile banking services to enhance customer convenience. The bank holds substantial influence in sectors like agriculture, small and medium enterprises (SMEs), and non-resident Indian (NRI) banking, being a key player in facilitating remittances. With its strategic presence across the nation and a focus on leveraging technology for innovation, Federal Bank Ltd. is instrumental in supporting India's economic growth and enhancing financial inclusivity.
- Sector
- Financial Services
- Industry
- Banks - Regional
- Listing
- NSE: FEDERALBNK
- Chief executive
- Mr. Krishnan Venkat Subramanian
- Employees
- 16,941
- Headquarters
- Aluva, India
- ISIN
- INE171A01029
- Website
- federal.bank.in
Public research · Report of
Business model & financial foundation
Federal Bank (NSE: FEDERALBNK), Private sector banking: revenue of ₹15,098 crore in FY26 (+13.8% on FY25) and net profit of ₹4,117 crore.
- Revenue, FY26 (₹ crore)
- 15,098
- standalone
- Revenue growth, FY26
- +13.8%
- on FY25
- Net profit, FY26 (₹ crore)
- 4,117
- to owners
- Return on equity, FY26
- 11.4%
- on average equity
- Market capitalisation (₹ crore)
- 82,758
- at the close of 16 Oct 2026
Company profile
Federal Bank earns net interest income from lending and investments funded by customer deposits, supplemented by transaction, distribution and treasury income. Its retail, commercial and corporate banking franchise is undertaking a mix and funding-cost transition under KVS Manian. Subsidiary NBFC and insurance stakes are distinct from the standalone banking model.
| Item | Value |
|---|---|
| Legal name | The Federal Bank Limited |
| Exchange and ticker | NSE: FEDERALBNK; BSE: 500469 |
| ISIN | INE171A01029 |
| Sector | Financial Services |
| Industry | Private sector banking |
| Headquarters | Aluva, India |
| Fiscal year end | March |
| Reporting basis and unit | standalone, in ₹ crore |
| Auditor | Suri & Co and M S K A & Associates (FY26) |
| Market capitalisation | ₹82,758 crore (16 Oct 2026) |
| Shares outstanding | 246.43 crore shares (FY26) |
| Price | ₹335.0 (close, 16 Oct 2026) |
| 52-week range | ₹211.5 - ₹371.7 (to 16 Oct 2026) |
| Website | https://www.federal.bank.in |
Corporate structure and shareholding
| Entity | Holding | Business |
|---|---|---|
| Fedbank Financial Services | 60.79% | Gold and property secured lending |
| Federal Operations and Services | 100% | Captive back-office services |
| Ageas Federal Life Insurance | 30% | Life insurance associate |
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 0.00% | 0.00% | 0.00% | |
| Foreign institutions | 24.94% | 26.10% | 27.70% | |
| Domestic institutions | 51.11% | 50.40% | 49.30% | |
| of which mutual funds | 38.16% | 38.11% | 37.69% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Federal Bank is the deposit-funded standalone lending franchise; fees, FX, securities and recoveries complement loan spreads. Subsidiary Fedfina and associate Ageas differ economically, so consolidated NBFC loans are not spliced into bank history.
| Segment | revenue, FY26 (₹ crore) | Share | segment result net provisions, FY26 (₹ crore) | Share |
|---|---|---|---|---|
| Retail Banking (Digital plus Other Retail) | 31,743 | 98.8% | 1,409 | 26.2% |
| Corporate/Wholesale Banking | 12,300 | 38.3% | 2,384 | 44.4% |
| Treasury | 6,689 | 20.8% | 1,156 | 21.5% |
| Other Banking Operations | 432.5 | 1.3% | 367.6 | 6.8% |
| Unallocated income/result (reconciliation, not business segment) | 508.7 | 1.6% | 52.7 | 1.0% |
| Inter-segment revenue elimination (negative bridge) | -19,537 | -60.8% |
Segments as the company reports them (standalone); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| HDFC Bank (HDFCBANK) | Large private deposit franchise and return benchmark |
| ICICI Bank (ICICIBANK) | Large private return-on-equity benchmark |
| Axis Bank (AXISBANK) | Private corporate/retail deposit and margin comparator |
| Karur Vysya Bank (KARURVYSYA) | Mid-sized southern banking franchise |
| City Union Bank (CUB) | Southern SME and deposit franchise |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Interest earned | 22,188 | 26,365 | 27,695 | ||
| Interest expended | 13,895 | 16,897 | 17,038 | ||
| Net interest income | 8,293 | 9,468 | 10,657 | ||
| Other income | 3,079 | 3,801 | 4,440 | ||
| Net revenue: NII plus other income | 11,373 | 13,269 | 15,098 | ||
| Employees cost | 2,829 | 3,088 | 3,225 | ||
| Other operating expenses | 3,369 | 4,080 | 4,666 | ||
| Operating expenses | 6,198 | 7,168 | 7,892 | ||
| Profit before provisions and contingencies | 5,174 | 6,101 | 7,206 | ||
| Provisions other than tax and contingencies | 196.1 | 733.1 | 1,837 | ||
| Profit before tax | 2,646 | 4,263 | 4,978 | 5,368 | 5,370 |
| Tax expense | 680.9 | 1,087 | 1,258 | 1,316 | 1,252 |
| Standalone net profit | 1,996 | 3,210 | 3,721 | 4,052 | 4,117 |
| Standalone diluted EPS (₹) | 9.44 | 14.85 | 15.87 | 16.37 | 16.56 |
| Other operating costs (vendor classification) * | 2,132 | 1,923 | 2,539 | 4,482 | 3,754 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Gross advances | 2,12,623 | 2,38,134 | 2,68,369 | ||
| Balance sheet advances net of provisions | 2,09,403 | 2,34,836 | 2,64,594 | ||
| Deposits | 2,52,534 | 2,83,647 | 3,13,909 | ||
| Book equity including warrants subscription | 29,094 | 33,421 | 38,705 | ||
| Paid-up equity capital | 487.1 | 491.2 | 492.9 | ||
| Reserves and surplus including revaluation | 28,607 | 32,929 | 36,663 | ||
| Share warrants subscription money | 1,549 | ||||
| Total assets | 3,08,312 | 3,49,005 | 3,87,521 | ||
| Borrowings excluding deposits | 19,587 | 25,862 | 18,026 | 23,726 | 21,159 |
| Cash and balances with RBI | 11,494 | 20,354 | 15,566 | ||
| Balances banks and money at call/short notice | 7,469 | 10,505 | 10,161 | ||
| Cash equivalents: RBI plus banks/call money | 18,963 | 30,859 | 25,727 | ||
| Investments | 60,860 | 66,246 | 76,676 | ||
| Fixed assets net | 1,835 | 2,212 | 1,020 | 1,478 | 1,473 |
| Other assets | 18,066 | 15,585 | 19,051 | ||
| Other liabilities and provisions | 8,657 | 8,210 | 13,748 | ||
| Trade payables * | 283.4 | 631.4 | 733.9 | 899.1 | 702.0 |
| Capital work in progress * | 28.9 | 81.4 | 67.0 | 72.1 | 108.0 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash flow from operating activities | 986.5 | 2,513 | 7,553 | 10,073 | 4,349 |
| Purchase of fixed assets, positive outflow | -288.2 | -481.0 | 303.7 | 726.7 | |
| Dividends paid, positive outflow | -139.7 | -378.7 | 234.9 | 294.0 | -295.0 |
| Free cash flow (vendor definition) * | -8,069 | 5.28 | 6,103 | 8,046 | 4,041 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Actual issued shares at year end, not diluted WAvg | 206.91 | 210.91 | 243.54 | 245.58 | 246.43 |
| Diluted weighted average shares: not retrieved | n.r. | n.r. | n.r. | ||
| One-off income-tax refund interest included in NII | 456.6 | ||||
| Floating provision for NPA | 456.0 | ||||
| Tax provision write-back | 114.5 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Interest earned | 6,577 | 6,809 | 6,648 | 6,687 | 6,742 | 6,868 | 7,399 | 7,238 |
| Interest expended | 4,210 | 4,377 | 4,271 | 4,350 | 4,247 | 4,215 | 4,226 | 4,292 |
| Net interest income | 2,367 | 2,431 | 2,377 | 2,337 | 2,495 | 2,653 | 3,173 | 2,946 |
| Other income | 964.0 | 916.2 | 1,006 | 1,113 | 1,082 | 1,100 | 1,145 | 1,048 |
| Net revenue: NII plus other income | 3,331 | 3,348 | 3,383 | 3,450 | 3,577 | 3,753 | 4,318 | 3,994 |
| Employees cost | 779.6 | 785.2 | 783.8 | 797.6 | 803.4 | 848.7 | 775.7 | 921.7 |
| Other operating expenses | 986.3 | 992.9 | 1,134 | 1,096 | 1,130 | 1,175 | 1,265 | 1,175 |
| Operating expenses | 1,766 | 1,778 | 1,918 | 1,894 | 1,933 | 2,024 | 2,041 | 2,097 |
| Operating profit before provisions | 1,565 | 1,569 | 1,465 | 1,556 | 1,644 | 1,729 | 2,276 | 1,897 |
| Provisions excluding tax and contingencies | 158.4 | 292.3 | 138.1 | 400.2 | 363.1 | 332.4 | 741.0 | 317.7 |
| Profit before tax | 1,407 | 1,277 | 1,327 | 1,156 | 1,281 | 1,397 | 1,535 | 1,580 |
| Tax expense | 350.3 | 321.7 | 297.1 | 294.4 | 325.8 | 355.7 | 276.3 | 402.7 |
| Standalone net profit | 1,057 | 955.4 | 1,030 | 861.8 | 955.3 | 1,041 | 1,259 | 1,177 |
| Standalone diluted EPS, NOT annualised (₹) | 4.27 | 3.85 | 4.16 | 3.47 | 3.85 | 4.19 | 5.05 | 4.60 |
| Other operating costs (vendor classification) * | 1,059 | 1,064 | 1,195 | 1,158 | 1,235 | 1,325 | 1,241 |
Standalone, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 16.7% | 13.8% | |||
| Net margin | 32.7% | 30.5% | 27.3% | ||
| Return on equity | 12.8% | 13.0% | 11.4% | ||
| Return on assets | 1.2% | 1.2% | 1.1% | ||
| Dividend payout | 7.0% | 11.8% | 6.3% | 7.3% | 7.2% |
| EPS, diluted (₹) | 9.44 | 14.85 | 15.87 | 16.37 | 16.56 |
| Book value per share (₹) | 119.5 | 136.1 | 157.1 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on assets: net profit to owners / average total assets.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Standalone diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 3, information to 16 Oct 2026); market data at the close of 16 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Federal Bank includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Federal Bank
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 16 Oct 2026; page updated 25 Oct 2026.
Mool’s research is written by AI agents and published by Mool Capital Private Limited, a SEBI-registered Research Analyst, registration INH000012449, which is responsible for it. This page shows factual company information and an excerpt of that research; it carries no rating and is not investment advice for any individual. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Read the disclosures.