Federal Bank
Market Cap
₹191.3b
Last Updated
2020/01/26 13:01 UTC
Data Sources
Company Financials
Executive Summary
The Federal Bank Limited engages in commercial banking activities in India.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate balance sheet.
Similar Companies
Share Price & News
How has Federal Bank's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FEDERALBNK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.8%
FEDERALBNK
-0.9%
IN Banks
-0.3%
IN Market
1 Year Return
11.0%
FEDERALBNK
8.8%
IN Banks
9.9%
IN Market
Return vs Industry: FEDERALBNK exceeded the Indian Banks industry which returned 7.2% over the past year.
Return vs Market: FEDERALBNK exceeded the Indian Market which returned 8.2% over the past year.
Shareholder returns
| FEDERALBNK | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | -0.9% | -0.3% |
| 30 Day | 8.8% | -1.8% | 3.5% |
| 90 Day | 18.7% | 5.5% | 5.9% |
| 1 Year | 12.5%11.0% | 9.2%8.8% | 11.9%9.9% |
| 3 Year | 26.2%22.1% | 21.6%20.2% | 30.2%23.3% |
| 5 Year | 43.6%35.4% | 8.1%4.6% | 37.1%24.8% |
Price Volatility Vs. Market
How volatile is Federal Bank's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Should Federal Bank (NSE:FEDERALBNK) Be Disappointed With Their 29% Profit?3 weeks ago | Simply Wall St
This Insider Has Just Sold Shares In The Federal Bank Limited (NSE:FEDERALBNK)1 month ago | Simply Wall St
Do You Like The Federal Bank Limited (NSE:FEDERALBNK) At This P/E Ratio?Valuation
Is Federal Bank undervalued compared to its fair value and its price relative to the market?
11.39x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FEDERALBNK (₹91.05) is trading above our estimate of fair value (₹52.36)
Significantly Below Fair Value: FEDERALBNK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FEDERALBNK is good value based on its PE Ratio (11.6x) compared to the Banks industry average (22.3x).
PE vs Market: FEDERALBNK is good value based on its PE Ratio (11.6x) compared to the Indian market (13.8x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FEDERALBNK's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FEDERALBNK is overvalued based on its PB Ratio (1.3x) compared to the IN Banks industry average (0.7x).
Next Steps
Future Growth
How is Federal Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
24.2%
Forecasted Banks industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Federal Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Check out Federal Bank's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
- Federal Bank competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Banks industry.
Past Performance
How has Federal Bank performed over the past 5 years?
15.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FEDERALBNK has high quality earnings.
Growing Profit Margin: FEDERALBNK's current net profit margins (29.2%) are higher than last year (25.9%).
Past Earnings Growth Analysis
Earnings Trend: FEDERALBNK's earnings have grown by 14.6% per year over the past 5 years.
Accelerating Growth: FEDERALBNK's earnings growth over the past year (38.7%) exceeds its 5-year average (14.6% per year).
Earnings vs Industry: FEDERALBNK earnings growth over the past year (38.7%) exceeded the Banks industry 29.5%.
Return on Equity
High ROE: FEDERALBNK's Return on Equity (11.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Federal Bank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: FEDERALBNK has a low level of unsold assets or inventory.
Debt Coverage by Assets: FEDERALBNK's debt is covered by short term assets (assets are 1.3x debt).
Financial Institutions Analysis
Asset Level: FEDERALBNK's level of assets compared to its equity is moderate.
Allowance for Bad Loans: Insufficient data to determine if FEDERALBNK has a sufficient allowance for bad loans.
Low Risk Liabilities: FEDERALBNK's liabilities are made up of primarily low risk sources of funding.
Loan Level: FEDERALBNK has an acceptable proportion of non-loan assets held.
Low Risk Deposits: FEDERALBNK's loans are broadly funded by customer deposits.
Level of Bad Loans: FEDERALBNK has a high level of bad loans (3.07%)
Next Steps
Dividend
What is Federal Bank's current dividend yield, its reliability and sustainability?
1.46%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FEDERALBNK's dividend (1.54%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).
High Dividend: FEDERALBNK's dividend (1.54%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).
Stability and Growth of Payments
Stable Dividend: FEDERALBNK's dividend payments have been volatile in the past 10 years.
Growing Dividend: FEDERALBNK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (17.8%), FEDERALBNK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
What is the CEO of Federal Bank's salary, the management and board of directors tenure and is there insider trading?
4.3yrs
Average management tenure
CEO
Shyam Srinivasan (57yo)
9.3yrs
Tenure
₹159,227,192
Compensation
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 ...
CEO Compensation Analysis
Compensation vs Market: Shyam's total compensation ($USD2.25M) is above average for companies of similar size in the Indian market ($USD749.06K).
Compensation vs Earnings: Shyam's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.3yrs
Average Tenure
56yo
Average Age
Experienced Management: FEDERALBNK's management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
2.0yrs
Average Tenure
59.5yo
Average Age
Experienced Board: FEDERALBNK's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: FEDERALBNK insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 13,457 |
| Max Price | ₹86.45 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | ₹93.40 |
| Entity | Individual |
| Shares | 20,650 |
| Max Price | ₹97.13 |
| Entity | Individual |
| Shares | 19,000 |
| Max Price | ₹102.89 |
| Entity | Individual |
| Shares | 11,500 |
| Max Price | ₹105.00 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | ₹105.06 |
| Entity | Individual |
| Shares | 14,500 |
| Max Price | ₹107.18 |
| Entity | Individual |
| Shares | 25,000 |
| Max Price | ₹107.19 |
| Entity | Individual |
| Shares | 5,990 |
| Max Price | ₹104.50 |
| Entity | Individual |
| Shares | 49,800 |
| Max Price | ₹105.66 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | ₹104.51 |
| Entity | Individual |
| Role | Head of Human Resources Executive VP & Chief Human Resources Officer |
| Shares | 24,000 |
| Max Price | ₹107.07 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | ₹104.50 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | ₹102.50 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director & CFO |
| Shares | 100,000 |
| Max Price | ₹97.67 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director & CFO |
| Shares | 100,000 |
| Max Price | ₹83.78 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Shyam Srinivasan (57yo)
MD, CEO & Director
- Tenure: 9.3yrs
- Compensation: ₹159.23m
Shalini Warrier (53yo)
COO, Business Head of Retail Banking Products & Additional Executive Director
Ashutosh Khajuria (58yo)
Executive Director & CFO
- Tenure: 4yrs
- Compensation: ₹28.49m
Anand Chugh
Head Marketing Department and Assistant General Manager
Ajith K. K. (55yo)
Executive VP & Chief Human Resources Officer
Surendran Amittathody
Head of Retail Business and General Manager of RBD & IBD
C. Sasidharan
Zonal Head and General Manager
- Tenure: 5.7yrs
K. Sunny
Strategic Initiative & Optimization Head and Additional General Manager
N Rajanarayanan
Vice President of Marketing & Investor Relations
Samir Rajdev
Company Secretary & Compliance Officer
- Tenure: 0.08yrs
Board Members
Balakrishnan Krishnamurthy (59yo)
Additional Non-Executive Independent Director
- Tenure: 1.3yrs
- Compensation: ₹690.00k
Shyam Srinivasan (57yo)
MD, CEO & Director
- Tenure: 9.3yrs
- Compensation: ₹159.23m
Shalini Warrier (53yo)
COO, Business Head of Retail Banking Products & Additional Executive Director
Grace Koshie (66yo)
Chairperson
- Tenure: 1yrs
- Compensation: ₹2.09m
Shubhalakshmi Panse (65yo)
Independent Director
- Tenure: 5.6yrs
- Compensation: ₹2.18m
Manoj Fadnis (57yo)
Additional Non-Executive Independent Director
- Tenure: 0.6yrs
Ashutosh Khajuria (58yo)
Executive Director & CFO
- Tenure: 4yrs
- Compensation: ₹28.49m
AP Hota Hota (62yo)
Non-Executive Independent Director
- Tenure: 2yrs
- Compensation: ₹1.69m
Siddhartha Sengupta (60yo)
Additional Non-Executive Independent Director
- Tenure: 0.6yrs
Chandrasekhar Balagopal (66yo)
Independent Director
- Tenure: 4.6yrs
- Compensation: ₹1.10m
Company Information
The Federal Bank Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Federal Bank Limited
- Ticker: FEDERALBNK
- Exchange: NSEI
- Founded: 1931
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: ₹191.266b
- Shares outstanding: 1.99b
- Website: https://www.federalbank.co.in
Number of Employees
Location
- The Federal Bank Limited
- Federal Towers
- P O Box No.103
- Aluva
- Kerala
- 683101
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500469 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Feb 1995 |
| FEDERALBNK | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Feb 1995 |
| FEDS | LSE (London Stock Exchange) | GDR (EACH REPR 1 ORD) (REGS) | GB | USD | Feb 2006 |
Biography
The Federal Bank Limited engages in commercial banking activities in India. It operates through 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, 2019, it operated through a network of 1,251 branches and 1,669 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/26 13:01 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.