Federal Bank is a leading private sector bank headquartered in Aluva, Kerala, with a strong presence across South India and a growing national footprint. Incorporated in 1931 as Travancore Federal Bank, it has evolved into a well-diversified financial institution offering retail banking, corporate banking, treasury operations, and digital financial services. With over 1,400 branches and a focus on technology-driven customer experience, Federal Bank has consistently delivered stable profitability and capital adequacy. As of January 2026, it remains a compelling mid-sized private banking option for long-term investors. This article provides a data-backed outlook on the Federal Bank share price target 2026–2030.
Federal Bank: Company Overview
- Founded: 1931
- Managing Director: Shri Shyam Srinivasan
- NSE Symbol: FEDERALBNK
- Business Segments: Retail Banking, Corporate/Wholesale Banking, Treasury, Digital & Transaction Banking
- Market Position: Second-largest private bank in Kerala; among the top 10 private banks by deposits
Federal Bank maintains a robust capital base with a CAR of 16.4%, healthy asset quality (Gross NPA: ~1.8%), and a disciplined approach to credit underwriting. Its focus on niche segments like SMEs, agri-loans, and gold loans provides steady revenue streams.
Federal Bank: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹246.70 |
| Market Capitalization | ₹60,794.79 Cr |
| No. of Shares Outstanding | 246.23 Cr |
| 52-Week High / Low | ₹271 / ₹173 |
| P/E Ratio (TTM) | 15.99 |
| P/B Ratio | 1.73 |
| EPS (TTM) | ₹15.44 |
| Book Value (TTM) | ₹142.35 |
| ROE | 12.97% |
| ROCE | 13.15% |
| Dividend Yield | 0.49% |
| Face Value | ₹2 |
| Net Interest Income | ₹9,468 Cr |
| Cost-to-Income Ratio | 54.02% |
| Capital Adequacy Ratio (CAR) | 16.4% |
| Profit Growth (YoY) | 8.90% |
| CASA % | 30.45% |
Federal Bank Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹260 – ₹290 |
| 2027 | ₹280 – ₹320 |
| 2028 | ₹300 – ₹350 |
| 2029 | ₹320 – ₹385 |
| 2030 | ₹340 – ₹420 |
Federal Bank Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹260 | ₹290 |
Federal Bank reported 8.90% YoY profit growth in FY2025, supported by stable net interest margins and controlled provisioning. Trading at a P/E of 15.99 and P/B of 1.73—slightly below peers like Axis Bank—the stock appears fairly valued. A 2026 target range of ₹260–₹290 assumes continued credit discipline and margin stability.
Federal Bank Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹280 | ₹320 |
If the bank gradually improves its cost-to-income ratio (currently 54.02%) and expands its retail loan book, earnings could grow at 12–15% annually. Assuming EPS reaches ₹17–₹18 by FY27 and P/E stabilizes at 16–17x, the 2027 target range of ₹280–₹320 is justified.
Federal Bank Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹300 | ₹350 |
By 2028, benefits from digital adoption, branch rationalization, and semi-urban penetration should reflect in margins. With a ROCE of 13.15%—higher than ROE—the bank efficiently deploys capital. A P/E of 16.5–17.5x on projected EPS of ₹18–₹20 supports the ₹300–₹350 band.
Federal Bank Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹320 | ₹385 |
Long-term tailwinds include rising credit penetration in South India and Federal Bank’s strong regional franchise. While competition from HDFC and ICICI remains intense, its agility offers pricing power in niche segments. Using a P/E of 17–18x on FY29 EPS (~₹19–₹21), the 2029 target is ₹320–₹385.
Federal Bank Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹340 | ₹420 |
Over a five-year horizon, Federal Bank is likely to remain a reliable compounder. If ROE holds above 12% and dividend payout stays near 7–8%, investor confidence will remain stable. A terminal P/E of 17.5–18.5x on FY30 EPS (~₹19.5–₹22.7) justifies the ₹340–₹420 range.
Federal Bank: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Domestic Institutional Investors (DII) | 49.71% |
| Foreign Institutional Investors (FII) | 25.54% |
| Public & Others | 24.75% |
| Promoters | 0% |
High institutional ownership (75.25% combined) ensures liquidity, analyst coverage, and price stability.
Federal Bank: Strengths vs Risks
Strengths:
- Consistent ROE (~13%) and ROCE (~13.15%)
- Strong capital position (CAR: 16.4%), well above regulatory minimums
- Healthy asset quality (Gross NPA: ~1.8%, Net NPA: ~0.44%)
- Leadership in SME, agri, and gold loans in South India
Risks:
- CASA ratio (30.45%) lags behind peers like ICICI (41.8%)
- Cost-to-income ratio (54.02%)is higher than efficient peers (e.g., ICICI: 38.6%)
- Limited national scale compared to top-tier private banks
- Contingent liabilities of ₹2.17 lakh Cr require monitoring
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 5+ years |
| Volatility | Lower than market average; high liquidity |
| Dividend/Income Potential | Low (0.49% yield), but consistent payouts |
| Best For | Core portfolio holding for conservative to moderate-risk investors |
FAQs
Is Federal Bank’s share worth buying?
Yes, for long-term portfolios seeking a stable mid-sized private bank with consistent returns. At a P/E of 15.99 and ROE of 12.97%, it trades at a reasonable valuation relative to fundamentals.
What is the target for Federal Bank’s share?
Based on fundamentals and sector trends, the Federal Bank share price target for 2026 is ₹260–₹290. The 2026–2030 cumulative range is ₹260 to ₹420.
What is the 52-week high-low of Federal Bank?
As of January 13, 2026, the 52-week high is ₹271, and the 52-week low is ₹173.
Is Federal Bank good or not?
Federal Bank is a good-quality private bank with strong regional strengths, a clean balance sheet, and consistent profitability. It may not offer explosive growth like smaller banks, but it provides reliable compounding with lower downside risk.
Final Verdict
Federal Bank stands out as a well-managed, regionally strong private sector bank with disciplined risk management and solid capital buffers. While it lacks the scale of HDFC or ICICI, its niche focus and operational consistency make it a dependable long-term holding.
Our Federal Bank share price target 2026–2030 (₹260 to ₹420) reflects steady earnings growth, moderate multiple expansion, and sustained investor confidence. It’s not a “cheap” stock, but it offers reliability in an uncertain macro environment.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Federal Bank Consolidated Page (FY2025 + TTM)
- Finology Ticker – FEDERALBNK Financials & Analysis
- Groww.in – Federal Bank Stock Profile
- Federal Bank Investor Presentation (Q3 FY26, Jan 2026)
- RBI Guidelines on Capital Adequacy and Asset Classification
