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Federal Bank

LSE:FEDS
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FEDS
LSE
₹193B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

The Federal Bank Limited engages in commercial banking activities in India. The last earnings update was 275 days ago. More info.


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FEDS Share Price and Events
7 Day Returns
0%
LSE:FEDS
2.3%
GB Banks
1.9%
GB Market
1 Year Returns
-31.5%
LSE:FEDS
-7.8%
GB Banks
2.5%
GB Market
FEDS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Federal Bank (FEDS) 0% 0% 0% -31.5% -54.8% 41.3%
GB Banks 2.3% 3.6% 4.4% -7.8% 16.1% -12.3%
GB Market 1.9% 3% 7.9% 2.5% 15.6% 6.8%
1 Year Return vs Industry and Market
  • FEDS underperformed the Banks industry which returned -7.8% over the past year.
  • FEDS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.5% over the past year.
Price Volatility
FEDS
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Federal Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Federal Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Federal Bank.

LSE:FEDS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 25 analysts.
= Stable Book Value * Return on Equity
= ₹76.74 * 12.4%
₹9.51
Book Value of Equity per Share Weighted future Book Value estimates from 23 analysts. ₹76.74
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:FEDS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 35%) (64.03%))
0.892
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.892 * 8.6%)
8.9%

Discounted Cash Flow Calculation for LSE:FEDS using Excess Returns Model Model

The calculations below outline how an intrinsic value for Federal Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:FEDS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.4% – 8.9%) * ₹76.74)
₹2.68
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹2.68 / (8.9% - 1.23%)
₹34.86
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹76.74 + ₹34.86
₹111.6
LSE:FEDS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:FEDS represents 0.01165x of NSEI:FEDERALBNK
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.01165x
Value per Share
(Listing Adjusted, USD)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 111.60 x 0.01165
$1.30
Value per share (USD) From above. $1.30
Current discount Discount to share price of $1.13
= -1 x ($1.13 - $1.30) / $1.30
13.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Federal Bank is available for.
Intrinsic value
13%
Share price is $1.13 vs Future cash flow value of $1.3
Current Discount Checks
For Federal Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Federal Bank's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Federal Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Federal Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Federal Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:FEDS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹4.92
NSEI:FEDERALBNK Share Price ** NSEI (2019-04-18) in INR ₹97
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 796 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Federal Bank.

LSE:FEDS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:FEDERALBNK Share Price ÷ EPS (both in INR)

= 97 ÷ 4.92

19.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federal Bank is overvalued based on earnings compared to the GB Banks industry average.
  • Federal Bank is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Federal Bank's expected growth come at a high price?
Raw Data
LSE:FEDS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
22.4%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 563 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:FEDS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.72x ÷ 22.4%

0.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federal Bank is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Federal Bank's assets?
Raw Data
LSE:FEDS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹62.24
NSEI:FEDERALBNK Share Price * NSEI (2019-04-18) in INR ₹97
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,365 Publicly-Listed Companies 1.51x
LSE:FEDS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:FEDERALBNK Share Price ÷ Book Value per Share (both in INR)

= 97 ÷ 62.24

1.56x

* Primary Listing of Federal Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federal Bank is overvalued based on assets compared to the GB Banks industry average.
X
Value checks
We assess Federal Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Federal Bank has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Federal Bank expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Federal Bank expected to grow at an attractive rate?
  • Federal Bank's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Federal Bank's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Federal Bank's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:FEDS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:FEDS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 22.4%
LSE:FEDS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 20%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:FEDS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:FEDS Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 98,652 29,852 1
2021-03-31 80,020 20,652 15
2020-03-31 66,377 16,078 20
2019-03-31 55,087 12,034 17
LSE:FEDS Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 38,979 -193,590 9,354
2017-03-31 35,945 -150,605 8,669
2016-03-31 26,701 -99,051 4,864

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Federal Bank's earnings are expected to grow significantly at over 20% yearly.
  • Federal Bank's revenue is expected to grow by 20% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:FEDS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from Federal Bank Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:FEDS Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 15.00 15.00 15.00 1.00
2021-03-31 10.25 11.80 8.00 19.00
2020-03-31 8.16 8.80 7.00 22.00
2019-03-31 6.11 6.50 5.70 19.00
LSE:FEDS Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 4.92
2017-03-31 5.04
2016-03-31 2.83

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Federal Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Federal Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Federal Bank has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Federal Bank performed over the past 5 years?

  • Federal Bank's last earnings update was 275 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Federal Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Federal Bank's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Federal Bank's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Federal Bank's earnings growth has not exceeded the GB Banks industry average in the past year (7.9% vs 42.2%).
Earnings and Revenue History
Federal Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Federal Bank Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:FEDS Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 38,979.30 9,354.39 19,724.94
2017-03-31 35,944.79 8,668.67 17,998.68
2016-03-31 26,701.10 4,864.19 16,118.56
2015-03-31 32,047.82 10,578.14 14,140.94
2014-03-31 26,952.48 8,497.49 12,558.82
2013-03-31 24,384.78 8,526.56 10,402.16

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Federal Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Federal Bank used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Federal Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Federal Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Federal Bank has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Federal Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Federal Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Federal Bank Company Filings, last reported 1 year ago.

LSE:FEDS Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 122,742.34 123,288.38 114,975.76
2017-03-31 89,513.69 63,454.93 85,757.47
2016-03-31 80,641.25 52,363.17 67,360.05
2015-03-31 77,002.73 23,929.80 59,008.47
2014-03-31 68,607.08 57,675.36 83,163.04
2013-03-31 62,639.15 52,390.45 54,826.27
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Federal Bank has an acceptable proportion of non-loan assets held.
  • Federal Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Federal Bank are broadly funded by customer deposits.
  • Federal Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Unable to establish if Federal Bank has a sufficient allowance for bad loans without relevant financial data.
  • Federal Bank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Federal Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Federal Bank has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Federal Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.03%
Current annual income from Federal Bank dividends. Estimated to be 1.88% next year.
If you bought $2,000 of Federal Bank shares you are expected to receive $21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Federal Bank's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Federal Bank's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:FEDS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:FEDS Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 2.40 1.00
2021-03-31 1.95 16.00
2020-03-31 1.66 17.00
2019-03-31 1.28 16.00
LSE:FEDS Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-07-18 1.000 1.182
2018-05-10 1.000 1.195
2017-06-21 0.900 0.846
2017-04-28 0.900 0.788
2016-05-02 0.700 1.015
2015-04-29 1.100 1.918
2014-06-26 1.000 1.496
2014-05-12 1.000 1.678
2013-07-02 0.900 2.411
2013-04-29 0.900 2.034
2012-06-29 0.900 1.935
2012-05-11 0.900 2.135
2011-09-05 0.850 2.176
2010-08-06 0.500 1.242
2010-05-14 0.500 1.499
2009-06-01 0.500 2.025
2009-04-20 0.400 2.030

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Federal Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
X
Income/ dividend checks
We assess Federal Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Federal Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Federal Bank has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Federal Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shyam Srinivasan
COMPENSATION ₹380,692,788
AGE 56
TENURE AS CEO 8.6 years
CEO Bio

Mr. Shyam Srinivasan has been Managing Director, Chief Executive Officer and Director of Federal Bank Limited since September 2010. Mr. Srinivasan joined Bank after having worked with leading multinational banks in India and overseas across Middle East, India and South East Asia, where he has gained significant experience in retail lending, wealth management and SME banking. Mr. Srinivasan is an alumnus of the Indian Institute of Management, Kolkata and Regional Engineering College, Tiruchirapally. He has completed a Leadership Development Program from the London Business School and has served on the Global Executive Forum (the top 100 executives) of Standard Chartered Bank from 2004 to 2010.He holds key positions in the Industry as follows: Chairman of IBA Committee on Member Private Sector Banks., Member of the committee on Financial Sector Legislative Reforms set up by Reserve Bank of India, Past Chairman of Kerala State Council of Confederation of Indian Industries, Honorary fellow & governing council member of Indian Institute of Banking and Finance, Chairman of Policyholder Protection Committee of IDBI Federal.

CEO Compensation
  • Shyam's compensation has increased by more than 20% in the past year.
  • Shyam's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Federal Bank management team in years:

3
Average Tenure
57
Average Age
  • The tenure for the Federal Bank management team is about average.
Management Team

Shyam Srinivasan

TITLE
MD, CEO & Director
COMPENSATION
₹381M
AGE
56
TENURE
8.6 yrs

Ashutosh Khajuria

TITLE
Executive Director & CFO
COMPENSATION
₹30M
AGE
57
TENURE
3.6 yrs

Shalini Warrier

TITLE
Chief Operating Officer
AGE
52
TENURE
3.4 yrs

Girish Ganapathy

TITLE
Senior VP & Company Secretary
COMPENSATION
₹5M

Jose Joseph

TITLE
Executive Vice President
AGE
60
TENURE
1.8 yrs

P. Satheesh

TITLE
Senior Vice President & Head - HR
AGE
59

Jose Mathew

TITLE
Executive Vice President
AGE
57
TENURE
1.3 yrs

Sunny N. V.

TITLE
Senior Vice President & Zonal Head
AGE
59

Sumit Kakkar

TITLE
Chief Credit Officer
AGE
47
TENURE
2.7 yrs

Diwakar Dixit

TITLE
Senior Vice President
AGE
46
Board of Directors Tenure

Average tenure and age of the Federal Bank board of directors in years:

3.8
Average Tenure
62.5
Average Age
  • The tenure for the Federal Bank board of directors is about average.
Board of Directors

Dilip Sadarangani

TITLE
Chairman
COMPENSATION
₹2M
AGE
68
TENURE
0.3 yrs

Shyam Srinivasan

TITLE
MD, CEO & Director
COMPENSATION
₹381M
AGE
56
TENURE
8.6 yrs

Ashutosh Khajuria

TITLE
Executive Director & CFO
COMPENSATION
₹30M
AGE
57
TENURE
3.3 yrs

Grace Koshie

TITLE
Director
COMPENSATION
₹2M
AGE
65
TENURE
5.4 yrs

Shubhalakshmi Panse

TITLE
Director
COMPENSATION
₹2M
AGE
64
TENURE
4.8 yrs

Chandrasekhar Balagopal

TITLE
Director
COMPENSATION
₹1M
AGE
65
TENURE
3.8 yrs

Abhaya Hota

TITLE
Non-Executive Independent Director
COMPENSATION
₹160K
AGE
61
TENURE
1.3 yrs

Nilesh Vikamsey

TITLE
Director
COMPENSATION
₹1M
AGE
54
TENURE
7.8 yrs

Balakrishnan Krishnamurthy

TITLE
Additional Non-Executive Independent Director
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Federal Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Federal Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

The Federal Bank Limited engages in commercial banking activities in India. It operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company’s deposit products include savings accounts, current accounts, demat accounts, salary accounts, fixed deposits, cash certificates, recurring deposits, exchange earner’s foreign currency accounts, gilt accounts, and NRI deposit schemes. Its loan portfolio comprises gold, housing, car, property, educational or career, cash, instant digital, business, and agriculture and agricultural allied loans; travel, gift, debit, and credit cards; and loans against fixed deposits. The company also provides life, health, and general insurance products; mutual funds, online trading, and national pension system, as well as term loans, project finance, bill discounting, working capital loans, bank guarantees, letter of credit, packing credit limit, rediscounting of export bills, Internet banking, mobile banking, ATM, telephone banking services. As of March 31, 2017, it operated through a network of 1,252 branches and 1,696 ATMs. The company was formerly known as Travancore Federal Bank Limited and changed its name to The Federal Bank Limited in March 1947. The Federal Bank Limited was incorporated in 1931 and is headquartered in Aluva, India.

Details
Name: The Federal Bank Limited
FEDS
Exchange: LSE
Founded: 1931
₹2,775,201,628
1,985,127,474
Website: http://www.federalbank.co.in
Address: The Federal Bank Limited
Federal Towers,
PB No. 103,
Aluva,
Kerala, 683101,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI FEDERALBNK Equity Shares National Stock Exchange of India IN INR 08. Feb 1995
BSE 500469 Equity Shares Mumbai Stock Exchange IN INR 08. Feb 1995
LSE FEDS SPON GDR REG S London Stock Exchange GB USD 01. Feb 2006
Number of employees
Current staff
Staff numbers
12,112
Federal Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 20:53
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/16
Last earnings filing: 2018/07/18
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.