The Federal Bank Ltd.

SECTOR: Bank - Private

45.65
₹ -1.5 (-3.18%)
Today's High: 48 Today's Low : 45.3
52 Week High: 110.35 52 Week Low : 35.70
 FinStar
FinStar Indicates the overall health and quality of a stock based on Finology Research.
Ownership Very Stable
High level of belief in company’s potential exhibited by insiders.
ValuationExpensive
The stock is at a premium valuation at this point.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

 Company Essentials

Market Cap

9098.521024505 Cr.

P/E

5.61

P/B

0.64

Face Value

₹2

Div. Yield

3.56%

Book Value (TTM)

71.2002

CASA %

32.4045604637966

Net Interest Income

4176.345 Cr.

Cost To Income %

50.01

Promoter Holding

0.0%

EPS (TTM)

8.1434

CAR %

14.14

ROE

9.77 %

ROCE

10.81 %

Profit Growth

41.54 %

No. of Shares

199.3104277 Cr.

Add your own Ratio
* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

 Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

 Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

 Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 ROE

1 Year9.77%
3 Year9.28%
5 Year9.51%

 ROA%

1 Year0.84%
3 Year0.77%
5 Year0.83%

 Net NPA%

1 Year1.48%
3 Year1.48%
5 Year1.36%

 NIM

1 Year2.75%
3 Year2.76%
5 Year2.84%

 CAR %

14.14

 Cost of Liabilities %

5.07

 PEG Ratio

0.14

 Advances Growth %

19.86

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Mar 2020 0.0 0.0
Dec 2019 0.0 0.0
Sep 2019 0.0 0.0
Jun 2019 0.0 0.0
Mar 2019 0.0 0.0
* Figures given above are % of equity capital

 Strengths

  • The company has delivered good Profit growth of 37.7733444539645% over the past 3 years.
  • Strong Advances growth of 23.8007270433968% in the last 3 years.

 Limitations

  • The bank has a very low ROA track record. Average ROA of 3 years is 0.773333333333333%
  • CASA Growth of -1.24655132908648% YoY, which is very low.
  • Low other Income proportion of 11.8313428685899%.
  • High Cost to income ratio of 50.01%.

 Quarterly Result (All Figures are in Crores.)

Particulars Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020
Interest Earned 3032.32 3229.3 3254.25 3330.36 3396.84
Other Income 411.72 391.52 420.92 407.86 711.11
Interest Expended 1935.79 2075.13 2130.47 2175.43 2180.83
Operating Expenses 753.5 762.93 825.9 818.97 967.8
Total Provisions 177.76 192.04 251.77 160.86 567.5
Profit Before Tax 576.99 590.72 467.03 582.96 391.82
Net Profit 381.51 384.21 416.7 440.64 301.23
Net NPA % 1.48 1.49 1.59 1.63 1.31
Gross NPA % 2.92 2.99 3.07 2.99 2.84
Return on Assets % 0.25 0.24 0.26 0.26 0.17
NPM % 12.58 11.9 12.8 13.23 8.87

 Profit & Loss (All Figures are in Crores except Adjusted EPS in Rs.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Interest Earned 7419.47 7744.69 8677.38 9752.86 11419.03
Other Income 878.31 786.38 1081.81 1159.12 1351.02
Interest Expended 5039.06 5240.45 5624.74 6170.05 7242.68
Operating Expenses 1630.93 1866.84 2209.53 2450.9 2764.27
Total Provisions 106.74 704.13 618.42 928.63 841.59
Profit Before Tax 1521.04 719.65 1306.5 1362.4 1921.51
Taxes 515.29 244 475.71 483.55 677.62
Net Profit 1005.75 475.65 830.79 878.85 1243.89
Adjusted EPS 6 3 5 4 6

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 171.33 343.79 344.81 394.43 397.01
Total Reserves 7566.81 7747.43 8597.57 11815.81 12876.03
Deposits 70824.99 79171.71 97664.56 111992.49 134954.34
Borrowings 2308.24 5114.57 5897.32 11533.5 7781.32
Other Liabilities 1979.11 2203.88 2472.67 2577.73 3331.29
Total Liabilities 82850.48 94581.37 114976.93 138313.95 159340
Assets
Balance with RBI 3379.54 3774.54 4576.57 5132.76 6419.17
Balance with Banks 1400.45 1645.27 2875.61 4070.65 3647.63
Investments 20568.82 25155.49 28196.09 30781.08 31824.47
Advances 51284.99 58090.15 73336.27 91957.47 110222.95
Net Block 440.05 504.22 474.55 448.08 454.95
Other Assets 5750.04 5395.95 5502.93 5914.63 6753.73
Total Assets 82850.48 94581.37 114976.93 138313.95 159340
* Other Non-current Liabilities include Net deferred Liabilities

 Corporate Actions

 Company Presentations

 Federal Bank Stock Price Analysis and Quick Research Report

Is Federal Bank an attractive stock to invest in?

 

The Indian Banking sector is rising rapidly due to infrastructure spending, favorable government policy, rising disposable income and increasing consumerism and easier access to credit.

The banking industry is in boom with growing demand across India. But is it the right time to invest in banking stocks is the question to be asked? We can look into more details and dig a little deeper into the analysis of the stock.

Let’s look at how Federal Bank is performing and if it is the right time to buy the stock of Federal Bank with detailed analysis.

  •  For Banking companies, The primary source of Income is interest earned on various loans given to individuals and corporates. Federal Bank has earned Rs 11419.025 Cr. revenue in the latest financial year. It has posted decent revenue growth of 13.8171558358441 % in last 3 Years.

  • In terms of advances, the bank reported 19.86 % YOY,  rise . If you see 3 years advance growth, it stands at 23.8007270433968 %.

  • Currently the company has a CASA ratio of 32.4045598490566 %. It’s overall cost of liability stands at 5.07419042945467 %. Also, the total deposits from these accounts stood at Rs 134954.344 Cr.

  • The Bank has a average ROA track record. The ROA of Federal Bank is at 0.835794925346613 %.

  • The Lender is efficiently  managing it’s overall asset portfolio. The Gross NPA and Net NPA stood at 2.92 % and 1.48 % respectively as on the latest financial year.

  • One other important measure of banks’ financial health is provisioning coverage ratio. The YoY change in provision and contingencies is negative at -9.3727116877299 % which means it has decreased from the previous year.

  • Non-Interest income or other incomes are very important for banks as it gives a regular source of income for bank with no additional risk. Other income of Federal Bank decreased and is currently at Rs 0.1351024 Cr.

  • The company has a Good Capital Adequacy Ratio of 14.14 .

  • The best metric which provides insights about bank’s valuation is P/B ratio. Currently Federal Bank is trading at a P/B of 1.44225320759121 . The historical average PB was 1.416.

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