Regulatory
MEDIUMTrigger: Rate transmission on EBM-linked 46% of loan book is near-immediate, while CASA/term deposit repricing happens with a lag, creating a transient NIM squeeze risk in FY27
Monitor: regulatory
Federal Bank Ltd: Why Is It Outperforming Nifty 500?
ActiveAverageRe-Entry
In , Federal Bank Ltd (Banks - Private) is outperforming Nifty 500 with +5.0% relative strength. Fundamentals: Average.
Federal Bank Ltd Key Facts
- PE Ratio
- 16.9x
- Market Cap
- ₹73,276 Cr
- PAT Growth YoY
- +24%
- Revenue Growth YoY
- +12%
- RS vs Nifty 500
- +5.0%
PB: Mid ExpansionRiding Wave
What's Happening
🌐FII stake decreased 2.2% this quarter
🏛️DII accumulation — stake up 2.8%
💰Trading 33% above estimated fair value — significant premium
Key Risks
1. Regulatory
MEDIUM2. Credit
MEDIUM3. Fx
LOWKey Numbers
PAT Growth YoY
+24%
Inflection Up
Revenue YoY
+12%
Stable
Price to Book
1.8
Current Price
₹297
Dividend Yield
0.40%
Fundamental Score
42/100
Average
3Y PAT CAGR
+12%
Market Cap
73.3K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What Are the Key Risks for Federal Bank Ltd?
Earnings deceleration risks from management commentary
Credit
MEDIUMTrigger: MFI sector stress (RBI scrutiny on MFI overleveraging) and rural credit quality in Agri remain watch points; any macro deterioration could accelerate slippages in these segments
Monitor: credit
Fx
LOWTrigger: Federal Bank's unique dependence on Kerala NRI remittances (~20% market share) means geopolitical disruptions in Gulf corridors or INR appreciation could materially impact NR deposit inflows and fee income
Monitor: fx
Cyber
LOWTrigger: Rapid digital migration at scale increases systemic cyber exposure; a major breach or outage at this level of digital dependency could have severe reputational and operational consequences
Monitor: cyber
What Is Federal Bank Ltd's Management Saying?
Key quotes from recent conference calls
“NIM excl one-off stands at 3.20% in Q4 FY26; cost of deposits at 5.43%, yield on advances at 8.65%, declining from 9.31% in Q4 FY25 [Risk (regulatory): MEDIUM]”
“Fresh slippage at Rs.474 Cr in Q4 FY26; Agri/MFI NPA at Rs.1,414 Cr; retail slippages at Rs.138 Cr in Q4 FY26 [Risk (credit): MEDIUM]”
“NRE and NR deposits at Rs.93,660 Cr and Rs.1,02,620 Cr respectively, YoY growth 13%; remittance market share at 19.72% in 9m FY26 [Risk (fx): LOW]”
“93.73% transactions serviced digitally; Feddy handled approximately 11 lakh customer queries during the quarter, marking a 14% QoQ increase [Risk (cyber): LOW]”
How Fast Is Federal Bank Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +12% | +19% | Stable |
| PAT (Net Profit) | +24% | +12% | Inflection Up |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
Other Top Banks - Private Stocks Beating Nifty 500
Frequently Asked Questions: Federal Bank Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Federal Bank Ltd's latest quarterly results?
Federal Bank Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +24.3% (turning around (inflection up))
- Revenue Growth YoY: +11.8%
- Net Interest Margin: 7.00%
Is Federal Bank Ltd's profit growing or declining?
Federal Bank Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +24.3% (latest quarter)
- PAT Growth QoQ: +23.7% (sequential)
- 3-Year PAT CAGR: +11.8%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Federal Bank Ltd's revenue growth trend?
Federal Bank Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +11.8%
- Revenue Growth QoQ: +8.0% (sequential)
- 3-Year Revenue CAGR: +18.6%
What is Federal Bank Ltd's asset quality trend?
Federal Bank Ltd's asset quality trend is improving.
- GNPA Change YoY: -0.2% bps
What is Federal Bank Ltd's 3-year profit and revenue CAGR?
Federal Bank Ltd's long-term compounding rates
- 3-Year Profit CAGR: +11.8%
- 3-Year Revenue CAGR: +18.6%
Is Federal Bank Ltd's growth accelerating or decelerating?
Federal Bank Ltd's earnings growth is turning around (inflection up) with strong momentum on a sequential basis.
- YoY Acceleration: +6.0% bps
- Sequential Acceleration: +13.7% bps
What is Federal Bank Ltd's trailing twelve month (TTM) performance?
Federal Bank Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹4,000 Cr
- TTM PAT Growth: +6.1% YoY
- TTM Revenue: ₹30,000 Cr
- TTM Revenue Growth: +5.6% YoY
Is Federal Bank Ltd overvalued or undervalued?
Federal Bank Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 16.9x
- Price-to-Book: 1.8x
What is Federal Bank Ltd's current PE ratio?
Federal Bank Ltd's current PE ratio is 16.9x.
- Current PE: 16.9x
- Market Cap: 73.3K Cr
- Dividend Yield: 0.40%
How does Federal Bank Ltd's valuation compare to its history?
Federal Bank Ltd's current PE is 16.9x.
- Current PE: 16.9x
- Valuation Assessment: Significantly Overvalued
What is Federal Bank Ltd's price-to-book ratio?
Federal Bank Ltd's price-to-book ratio is 1.8x.
- Price-to-Book (P/B): 1.8x
- Book Value per Share: ₹162
- Current Price: ₹297
Is Federal Bank Ltd a fundamentally strong company?
Federal Bank Ltd is rated Average with a fundamental score of 42.05/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +24.3% (20% weight)
- PAT Growth QoQ: +23.7% (15% weight)
- Earnings trend: inflection_up (5% weight)
Is Federal Bank Ltd debt free?
Federal Bank Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹33,000 Cr
What is Federal Bank Ltd's return on equity (ROE) and ROCE?
Federal Bank Ltd's return ratios over recent years
- FY2024: ROE 15.0%
- FY2025: ROE 13.0%
- FY2026: ROE 12.0%
Is Federal Bank Ltd's cash flow positive?
Federal Bank Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹4,000 Cr
- Free Cash Flow (FCF): ₹-7,000 Cr
- CFO/PAT Ratio: 97% (strong cash conversion)
What is Federal Bank Ltd's dividend yield?
Federal Bank Ltd's current dividend yield is 0.40%.
- Dividend Yield: 0.40%
- Current Price: ₹297
Who holds Federal Bank Ltd shares — promoters, FII, DII?
Federal Bank Ltd's shareholding pattern (Mar 2026)
- FII (Foreign): 26.1%
- DII (Domestic): 50.4%
- Public: 23.6%
Is promoter holding increasing or decreasing in Federal Bank Ltd?
Federal Bank Ltd's promoter holding is 0.0%.
- Current Promoter Holding: 0.0% (Mar 2026)
How long has Federal Bank Ltd been outperforming Nifty 500?
Federal Bank Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Is Federal Bank Ltd a new momentum entry or an established outperformer?
Federal Bank Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the key risks in Federal Bank Ltd?
Federal Bank Ltd has 4 key risks worth monitoring
- [MEDIUM] Regulatory — Rate transmission on EBM-linked 46% of loan book is near-immediate, while CASA/term deposit repricing happens with a lag, creating a transient NIM squeeze risk in FY27
- [MEDIUM] Credit — MFI sector stress (RBI scrutiny on MFI overleveraging) and rural credit quality in Agri remain watch points; any macro deterioration could accelerate slippages in these segments
- [LOW] Fx — Federal Bank's unique dependence on Kerala NRI remittances (~20% market share) means geopolitical disruptions in Gulf corridors or INR appreciation could materially impact NR deposit inflows and fee income
- [LOW] Cyber — Rapid digital migration at scale increases systemic cyber exposure; a major breach or outage at this level of digital dependency could have severe reputational and operational consequences
What did Federal Bank Ltd's management say in the latest earnings call?
In Q4 FY26, Federal Bank Ltd's management highlighted
- "NIM excl one-off stands at 3.20% in Q4 FY26; cost of deposits at 5.43%, yield on advances at 8.65%, declining from 9.31% in Q4 FY25 [Risk (regulatory..."
- "Fresh slippage at Rs.474 Cr in Q4 FY26; Agri/MFI NPA at Rs.1,414 Cr; retail slippages at Rs.138 Cr in Q4 FY26 [Risk (credit): MEDIUM]"
- "NRE and NR deposits at Rs.93,660 Cr and Rs.1,02,620 Cr respectively, YoY growth 13%; remittance market share at 19.72% in 9m FY26 [Risk (fx): LOW]"
Is Federal Bank Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Federal Bank Ltd may be worth studying
- Earnings growing at +24.3% YoY
- Cash flow is positive — CFO ₹4,000 Cr
What is the investment thesis for Federal Bank Ltd?
Federal Bank Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +11.8% YoY
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Regulatory
What is the future outlook for Federal Bank Ltd?
Federal Bank Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Valuation: Significantly Overvalued
- Key Risk: Regulatory
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.