NSEI:FEDERALBNK

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Executive Summary

The Federal Bank Limited engages in commercial banking activities in India. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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

7.8%

FEDERALBNK

2.6%

IN Banks

-0.5%

IN Market


1 Year Return

-31.6%

FEDERALBNK

-21.5%

IN Banks

2.0%

IN Market

Return vs Industry: FEDERALBNK underperformed the Indian Banks industry which returned -21.5% over the past year.

Return vs Market: FEDERALBNK underperformed the Indian Market which returned 2% over the past year.


Shareholder returns

FEDERALBNKIndustryMarket
7 Day7.8%2.6%-0.5%
30 Day14.5%8.1%0.3%
90 Day-0.2%3.1%7.1%
1 Year-31.6%-31.6%-21.5%-21.5%3.7%2.0%
3 Year-51.6%-52.8%-36.5%-37.2%2.0%-3.0%
5 Year5.8%1.3%-13.3%-15.2%40.9%30.4%

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

Valuation

Is Federal Bank undervalued compared to its fair value and its price relative to the market?

7.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FEDERALBNK (₹57) is trading above our estimate of fair value (₹28.71)

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 (7.5x) compared to the IN Banks industry average (16.6x).

PE vs Market: FEDERALBNK is good value based on its PE Ratio (7.5x) compared to the Indian market (16.3x).


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's PB Ratio (0.7x) is in line with the IN Banks industry average.


Next Steps

Future Growth

How is Federal Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.6%

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

Past Performance

How has Federal Bank performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FEDERALBNK has a high level of non-cash earnings.

Growing Profit Margin: FEDERALBNK's current net profit margins (26.5%) are lower than last year (29.2%).


Past Earnings Growth Analysis

Earnings Trend: FEDERALBNK's earnings have grown significantly by 20% per year over the past 5 years.

Accelerating Growth: FEDERALBNK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FEDERALBNK had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Banks industry average (-0.3%).


Return on Equity

High ROE: FEDERALBNK's Return on Equity (9.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: FEDERALBNK's Assets to Equity ratio (12.2x) is moderate.

Allowance for Bad Loans: Insufficient data to determine if FEDERALBNK has a sufficient allowance for bad loans.

Low Risk Liabilities: 89% of FEDERALBNK's liabilities are made up of primarily low risk sources of funding.

Loan Level: FEDERALBNK has an appropriate level of Loans to Assets ratio (66%).

Low Risk Deposits: FEDERALBNK's Loans to Deposits ratio (80%) is appropriate.

Level of Bad Loans: FEDERALBNK has a high level of bad loans (2.9%).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FEDERALBNK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FEDERALBNK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FEDERALBNK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FEDERALBNK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FEDERALBNK is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FEDERALBNK's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Shyam Srinivasan (58 yo)

10.08yrs

Tenure

₹22,660,615

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 ($USD308.36K) is below average for companies of similar size in the Indian market ($USD607.39K).

Compensation vs Earnings: Shyam's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shyam Srinivasan
MD, CEO & Director10.08yrs₹22.66m0.040%
₹ 45.4m
Ashutosh Khajuria
Executive Director & CFO4.75yrs₹15.62m0.018%
₹ 20.0m
Shalini Warrier
COO, Business Head of Retail Banking Products & Additional Executive Director0.75yr₹10.62mno data
Samir Rajdev
Company Secretary & Compliance Officer0.83yr₹9.87mno data
Anand Chugh
Head of Investors Relationno datano datano data
Ajith K. K.
Executive VP & Chief Human Resources Officer0.75yrno data0.0020%
₹ 2.3m
K. Krishnakumar
Senior Vice Presidentno datano datano data
Surendran Amittathody
Head of Retail Business and General Manager of RBD & IBDno datano datano data
C. Sasidharan
Zonal Head and General Manager6.42yrsno datano data
K. Sunny
Strategic Initiative & Optimization Head and Additional General Manager no datano datano data
Raju Hormis
Head of CSR Cellno datano datano data
Abu George
Chief General Manager and Regional Headno datano datano data

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: FEDERALBNK's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shyam Srinivasan
MD, CEO & Director10.08yrs₹22.66m0.040%
₹ 45.4m
Ashutosh Khajuria
Executive Director & CFO4.75yrs₹15.62m0.018%
₹ 20.0m
Shalini Warrier
COO, Business Head of Retail Banking Products & Additional Executive Director0.75yr₹10.62mno data
Balakrishnan Krishnamurthy
Additional Non-Executive Independent Director2.08yrs₹1.37m0.0030%
₹ 3.4m
Grace Koshie
Part-Time Chairperson0.75yr₹2.35mno data
Manoj Fadnis
Additional Non-Executive Independent Director1.33yrs₹1.39mno data
Sudarshan Sen
Additional Non-Executive Independent Director0.67yr₹240.00kno data
Varsha Purandare
Additional Non Executive Independent Director0.083yrno datano data
Abhaya Hota
Non-Executive Independent Director2.75yrs₹1.90mno data
Siddhartha Sengupta
Additional Non-Executive Independent Director1.33yrs₹1.63mno data
Chandrasekhar Balagopal
Independent Director5.33yrs₹1.48mno data

1.3yrs

Average Tenure

61yo

Average Age

Experienced Board: FEDERALBNK's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FEDERALBNK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹113.339b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500469BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
FEDERALBNKNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995
FEDSLSE (London Stock Exchange)GDR (EACH REPR 1 ORD) (REGS)GBUSDFeb 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 compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 12:33
End of Day Share Price2020/10/21 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.