The Federal Bank Limited (FEDERALBNK)
Mid CapFinancial Services stocks · Mid cap · NSE
The Federal Bank Limited is an Indian private sector bank offering a range of banking and financial services. It operates across retail, corporate, and institutional segments, supported by subsidiaries in financial services and operational support. The bank focuses on digital adoption and expanding its pan-India footprint.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 55/100Rev +10% YoY · PAT +37% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,862 Cr | +9.9% | -1.1% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹1,302 Cr | +36.9% | -6.5% |
| PAT margin | 16.6% | +326 bps | -96 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Federal Bank reports strong Q1 FY27 YoY profit growth and improved asset quality, driven by NII and fee income, despite some sequential moderation in key metrics.
The bank delivered robust YoY growth in core earnings and improved asset quality ratios, with decadal best GNPA/NNPA. However, QoQ performance shows some moderation in NII and a decline in fee income, suggesting a need to monitor sequential momentum and granular deposit growth.
Net Customer Assets mix (Jun-26)
Latest issuer-disclosed distribution across 3 reported categories.
Gold Loans
Gold loans grew by 33% YoY and 8.2% QoQ, driving retail growth towards secured, higher-yielding assets.
Commercial Banking (CoB)
CoB book grew by 25% YoY and 5.2% QoQ, now representing 23% of the non-retail book.
Corporate & Institutional Banking (CIB)
CIB book grew by 14% YoY and 4.3% QoQ, with CIB (excl. credit substitutes) growing 16% YoY.
Credit Cards
Credit Cards grew by 36% YoY and 10% QoQ, with the bank ranking 9th in credit card spends among Pvt Sec Banks.
Banking Outlets
Total banking outlets increased to 1,650 in Jun-26 from 1,591 in Mar-26.
ATMs/Recyclers
Total ATMs/Recyclers increased to 2,135 in Jun-26 from 2,094 in Mar-26.
Unified Account Opening Solution
Unified Account Opening Solution rolled out across all branches, enabling faster Aadhaar eKYC-based onboarding.
Diversified Advances Growth
Advances growth is diversified across Gold loans (8.2% QoQ), CoB (5.2% QoQ), CIB (4.3% QoQ), and Retail Book (2.6% QoQ).
Sustained Profitability Improvement
RoA improved to 1.22% (Q1 FY27) from 1.00% (Q1 FY26) and RoE to 12.01% (Q1 FY27) from 10.30% (Q1 FY26).
Digital Adoption
Digital transactions (Retail + Corporate) reached 94.46%, with 790 APIs made available and 392 RPA processes running.
Sequential Fee Income Decline
Fee income decreased by 3% QoQ to ₹957 Cr, despite a 22% YoY increase.
Sequential Micro Advances Decline
Micro Advances portfolio decreased by 2% QoQ to ₹3,761 Cr.
CASA Ratio Decline QoQ
CASA Ratio declined by 71 bps QoQ to 32.23%, though average CASA grew 6% QoQ.
Slippage Ratio
Slippage ratio was 61 bps in Q1 FY27, a significant improvement YoY (111 bps in Q1 FY26) but still a key metric for asset quality.
Top Borrower Concentration
Top 20 borrowers constitute 7.43% of the portfolio, indicating some concentration risk.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall growth in profitability, balance sheet, and asset quality trends. QoQ comparison is important for monitoring sequential momentum in advances, deposits, and fee income, especially given some quarterly fluctuations.
Net Advances Growth
Net Advances grew by 15% YoY and 1% QoQ to ₹2,77,498 Cr.
Net Interest Margin (NIM)
NIM stood at 3.33% in Q1 FY27, up from 2.94% in Q1 FY26, but down from 3.74% in Q4 FY26 (excluding one-off).
Gross NPA (GNPA)
GNPA was 1.52% in Q1 FY27, a decadal best, down from 1.91% in Q1 FY26 and 1.62% in Q4 FY26.
Net NPA (NNPA)
NNPA was 0.18% in Q1 FY27, a decadal best, down from 0.48% in Q1 FY26 and 0.37% in Q4 FY26 (excluding one-off).
Continuous Investment in Pan India Footprint
Management is focused on expanding banking outlets and ATMs/Recyclers, with a unified account opening solution rolled out.
Digitization as a Multiplier
Management emphasizes driving digital adoption across wholesale customers with solutions like Collection Hub and expanding digital payment capabilities.
Building Green Portfolio
The bank targets a green portfolio size of ₹15,000 Cr by March 2030 and aims for 750kWp in-house solar power generation by March 2028.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Interest Margin (NIM) | 3.33% | Sustained improvement or stabilization of NIM after the QoQ decline from 3.74%. |
| Sequential Deposit Growth | Total Deposits up 2% QoQ | Consistent sequential growth in total deposits and stabilization of CASA ratio to support funding costs. |
| Asset Quality (GNPA/NNPA) | GNPA 1.52%, NNPA 0.18% | Maintenance of decadal best asset quality ratios and continued low slippage rates. |
| Growth in High-Yielding Segments | Gold loans up 8% QoQ, Credit Cards up 10% QoQ | Continued strong sequential growth in high-yielding segments like Gold loans and Credit Cards to drive profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
57NeutralMACD −
Technical chart
FEDERALBNKdaily · 1Y · AUTO+18.4%Daily technical trend read
NeutralTrend is undirectional — long-term uptrend intact. RSI 44.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 44 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 8% off 52W high · 81% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 11.1% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +3.4%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 36 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 36 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 35.0%.
- Growth contributes 13/25 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Quality is weaker at 2/20; verify the latest quarterly trend.
- Balance sheet is weaker at 4/15; verify the latest quarterly trend.
- Valuation is weaker at 10/30; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +4 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 66th percentile of the scored universe and 79th percentile within Financial Services. Main check: financial discipline is weak at 56/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROCE is low at 6.4%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 79th pctile, median 62 · Mid: 41st pctile, median 76
148 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸5 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸ROCE is low at 6.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 18.10
- P/B
- 2.12
- EV/EBITDA
- —
- Market Cap
- 84792.00Cr
Profitability
- ROE
- 11.60%
- ROCE
- 6.39%
- ROA
- 1.20%
- Dividend Y
- 0.35%
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- 21.00%
- Revenue 3Y
- 19.00%
- EPS 3Y
- 11.00%
Balance Sheet
- Debt/Equity
- 0.11
- Interest Coverage
- —
- Altman Z
- 1.95
- Book Value
- 162.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 5/5
- OCF
- 4349.00 Cr
- EPS TTM
- 19.00
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 84%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.