Federal Bank Ltd.
NSE: FEDERALBNKFederal Bank Ltd.: A 30-second snapshot
Federal Bank (NSE: FEDERALBNK) trades at ₹280.25 as of 16 May 2026, up 45% over the trailing 12 months, with a trailing PE of 16.1 and forward PE of 11.8. Current price sits marginally below the 50-DMA (₹281.46) but 13% above the 200-DMA (₹247.89), with RSI at 42.29 in neutral territory. The bank reported net profit growth and maintained a dividend of ₹1.20 per share for the most recent quarter.
P/E
16.1
Forward P/E
11.8
ROE
+11.7%
Debt / Equity
—
Profit Margin
+29.9%
Div. Yield
+0.4%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
67/100
News
3 headlines · 1 positive · 0 negative
FEDERALBNK: Net profit and income rose, asset quality improved, and dividend maintained at Rs. 1.20 per share - TradingView
TradingView
Federal Bank Allots 229,887 Equity Shares Under Employee Stock Option Schemes - The Globe and Mail
The Globe and Mail
Federal Bank Limited Allots 62,111 Equity Shares Under Employee Stock Option Scheme 2017 - scanx.trade
scanx.trade
Recent context
- ·The most recent quarterly result (reported 29 April 2026) showed net profit and income growth, improved asset quality, and a maintained dividend of ₹1.20 per share.
- ·Federal Bank allotted 229,887 equity shares under ESOP schemes in May 2026, and a separate tranche of 62,111 shares in April 2026, reflecting ongoing employee compensation program activity.
- ·Mean analyst rating of 1.88 across 34 analysts (1–5 scale, lower = more constructive), based on data as of the run date.
Strengths
- +Highest quality score among 6 sector peers (64 vs next-best 53 at AXISBANK and BAJFINANCE), reflecting relatively stronger composite fundamentals within the peer set.
- +Forward PE of 11.8 is among the lowest in the Banking peer group (vs BAJFINANCE at 29.9 and HDFCLIFE at 68.5), indicating compressed valuation relative to earnings expectations.
- +5-year earnings CAGR of 22.2% alongside 5-year revenue growth of 12.3%, suggesting earnings have expanded faster than revenue over the period.
- +FCF was positive in 4 of the measured years, and the most recent quarter showed improvement in asset quality alongside stable net profit.
Weaknesses
- −ROE of 11.73% has not surpassed 15% in any measured year and ranks 5th of 6 peers in the sector, trailing HDFC Bank (13.82%), Bajaj Finserv (14.6%), and Bajaj Finance (17.91%).
- −Earnings consistency score of 43 out of 100 with a rising debt trend, indicating notable variability in profitability metrics across the measurement window.
- −Profit margin of 29.91% and ROE below 15% suggest the return profile is below the threshold typically associated with structurally high-quality banking franchises.
- −News data is limited to 3 headlines, two of which are routine ESOP allotment announcements, providing limited visibility into recent business developments or regulatory environment.
Open questions
- ?How has Federal Bank's NIM (net interest margin) trended over the past 4 quarters, and does the forward PE compression reflect market expectations of NIM pressure or earnings acceleration?
- ?Does the ROE remaining below 15% across all measured years reflect a structural feature of the bank's mix (retail vs wholesale, lending vs fee income), or is it a function of capital dilution from equity raises?
- ?The stock is up 45% over 12 months but RSI is at 42 and price is fractionally below the 50-DMA — what catalysts drove the trailing-year re-rating, and have those drivers been sustained in more recent quarters?
- ?Given the peer set heterogeneity (pure-play banks alongside NBFCs and an insurer), how does Federal Bank's risk-adjusted return profile compare specifically against mid-sized private sector bank peers like IndusInd or Kotak?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| FEDERALBNK | Federal Bank Ltd.You're viewing | 16.1 | +11.7% | 64 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.1 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.3 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹280.25
SMA 50
₹281.46
SMA 200
₹247.89
RSI (14)
42.3 (neutral)
From 52w high
-7.2%
1Y return
+45.0%
3M return
-0.7%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumROE of 11.73% has not exceeded 15% in any of the measured years (roeYearsAbove15 = 0) and ranks 5th out of 6 peers in the Banking sector. Bajaj Finance posts 17.91% and HDFC Bank 13.82% by comparison.
- mediumEarnings consistency score of 43 out of 100, with debt trend classified as rising. FCF was positive in 4 of measured years, but the consistency shortfall signals earnings variability across the measurement window.
- lowNews corpus is sparse at only 3 headlines, limiting the reliability of sentiment signal. The 1 positive / 2 neutral / 0 negative split carries low statistical weight given the small sample.
- lowpriceChange1Y data is null for all 5 listed peers (AXISBANK, BAJAJFINSV, BAJFINANCE, HDFCBANK, HDFCLIFE), making relative price-performance ranking versus the sector unavailable.
Cross-section contradictions
- Trailing PE of 16.1 is the second-lowest among 6 sector peers, and forward PE compresses further to 11.8, yet the stock has delivered +45% price return over 1 year — a notable divergence from the low-ROE profile and below-median consistency score.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days