Federal Bank has been providing an extensive range of financial services for several decades, positioning itself as one of India’s top private sector banks. The bank has consistently witnessed a stable growth trajectory and maintained a robust financial standing, attracting investor interest to its share price target as a gauge of its potential growth.
This article will delve into the Federal Bank’s share price forecast from 2024 to 2030 and assess whether it presents a favorable investment opportunity.
We will also examine the bank’s recent accomplishment of issuing the largest sum of money in a climate loan and its potential impact on the bank’s future growth trajectory.
Federal Bank Q3 FY24 Results Highlight
- Federal Bank reported its highest-ever standalone net profit of Rs 1,007 crore in Q3 FY24, marking a significant 25% increase year-on-year.
- The bank also achieved its highest-ever net interest income (NII) at Rs 2,123 crore, showcasing strong operational performance.
- Net advances for the quarter stood at Rs 199,185 crore, indicating an 18% year-on-year growth, with substantial expansions observed in the retail and business banking segments.
- Despite a slight uptick in gross non-performing assets (NPAs) on a sequential basis, Federal Bank maintained its asset quality, with stable net NPAs and an improved provision coverage ratio (PCR).
- Deposits surged to Rs 239,591 crore, reflecting a 19% year-on-year increase, with a 3% quarter-on-quarter uptick.
- The bank continued to expand its branch network, adding 65 new branches during FY24, reinforcing its presence in key markets.
- Although net interest margins (NIMs) saw a marginal dip, Federal Bank’s resilient performance positions it for sustained growth and profitability in the future.
You can buy Federal Bank shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| April 2024 | 154.00 | 133.91 |
| May 2024 | 151.72 | 131.93 |
| June 2024 | 157.19 | 136.68 |
| July 2024 | 155.61 | 135.32 |
| August 2024 | 161.84 | 140.73 |
| September 2024 | 168.31 | 146.36 |
| October 2024 | 165.01 | 143.49 |
| November 2024 | 171.61 | 149.23 |
| December 2024 | 173.33 | 150.72 |
In April 2024, Federal Bank’s stock is projected to reach a maximum price of 154.00 and a minimum price of 133.91, setting the starting point for the year. As the months progress, there is anticipation of fluctuations, with the maximum price expected to climb to 173.33 and the minimum to 150.72 by December 2024, indicating potential growth opportunities for investors. Throughout the year, investors will likely observe varying market trends, but Federal Bank’s stock is expected to demonstrate overall positive momentum, reflecting the bank’s performance and market dynamics.
| When | Maximum Price | Minimum Price |
| January 2025 | 173.50 | 133.46 |
| February 2025 | 173.85 | 133.73 |
| March 2025 | 177.50 | 136.54 |
| April 2025 | 174.02 | 133.86 |
| May 2025 | 168.95 | 129.96 |
| June 2025 | 176.55 | 135.81 |
| July 2025 | 173.09 | 133.15 |
| August 2025 | 178.45 | 137.27 |
| September 2025 | 180.59 | 138.91 |
| October 2025 | 185.28 | 142.53 |
| November 2025 | 189.91 | 146.09 |
| December 2025 | 198.46 | 152.66 |
Throughout 2025, Federal Bank’s stock is expected to experience a dynamic trajectory, with fluctuations in both maximum and minimum prices reflecting the evolving market conditions. Starting in January with a maximum price of 173.50 and a minimum price of 133.46, investors will witness the ebb and flow of the stock’s value. As the year progresses, the stock is projected to reach its peak in December, with a maximum price forecasted at 198.46 and a minimum price at 152.66, indicating a potential for significant growth opportunities amidst the changing market landscape. Throughout the year, stakeholders will remain vigilant, monitoring Federal Bank’s performance against economic indicators and market trends, as they strategize and make investment decisions in response to the unfolding market dynamics.
| When | Maximum Price | Minimum Price |
| January 2026 | 204.41 | 157.24 |
| February 2026 | 209.66 | 161.27 |
| March 2026 | 217.83 | 167.56 |
| April 2026 | 213.56 | 164.28 |
| May 2026 | 207.34 | 159.49 |
| June 2026 | 216.67 | 166.67 |
| July 2026 | 212.42 | 163.40 |
| August 2026 | 218.99 | 168.46 |
| September 2026 | 226.66 | 174.35 |
| October 2026 | 232.55 | 178.89 |
| November 2026 | 238.36 | 183.36 |
| December 2026 | 244.32 | 187.94 |
| When | Maximum Price | Minimum Price |
| January 2027 | 249.21 | 191.70 |
| February 2027 | 255.60 | 196.62 |
| March 2027 | 265.57 | 204.28 |
| April 2027 | 260.36 | 200.28 |
| May 2027 | 252.78 | 194.44 |
| June 2027 | 264.15 | 203.19 |
| July 2027 | 258.97 | 199.21 |
| August 2027 | 266.98 | 205.37 |
| September 2027 | 276.33 | 212.56 |
| October 2027 | 283.51 | 218.09 |
| November 2027 | 290.60 | 223.54 |
| December 2027 | 297.86 | 229.13 |
| When | Maximum Price | Minimum Price |
| January 2028 | 303.82 | 233.71 |
| February 2028 | 311.61 | 239.70 |
| March 2028 | 323.77 | 249.05 |
| April 2028 | 317.42 | 244.17 |
| May 2028 | 308.17 | 237.06 |
| June 2028 | 322.04 | 247.72 |
| July 2028 | 315.73 | 242.87 |
| August 2028 | 325.49 | 250.38 |
| September 2028 | 336.88 | 259.14 |
| October 2028 | 345.64 | 265.88 |
| November 2028 | 354.28 | 272.52 |
| December 2028 | 363.14 | 279.34 |
| When | Maximum Price | Minimum Price |
| January 2029 | 370.40 | 284.92 |
| February 2029 | 379.90 | 292.23 |
| March 2029 | 394.72 | 303.63 |
| April 2029 | 386.98 | 297.67 |
| May 2029 | 375.70 | 289.00 |
| June 2029 | 392.61 | 302.01 |
| July 2029 | 384.91 | 296.09 |
| August 2029 | 396.82 | 305.24 |
| September 2029 | 410.71 | 315.93 |
| October 2029 | 421.38 | 324.14 |
| November 2029 | 431.92 | 332.25 |
| December 2029 | 442.72 | 340.55 |
| When | Maximum Price | Minimum Price |
| January 2030 | 451.57 | 347.36 |
| February 2030 | 463.15 | 356.27 |
| March 2030 | 481.21 | 370.16 |
| April 2030 | 471.78 | 362.91 |
| May 2030 | 458.04 | 352.34 |
| June 2030 | 478.65 | 368.19 |
| July 2030 | 469.26 | 360.97 |
| August 2030 | 483.78 | 372.14 |
| September 2030 | 500.71 | 385.16 |
| October 2030 | 513.73 | 395.17 |
| November 2030 | 526.57 | 405.05 |
| December 2030 | 539.73 | 415.18 |
In January 2030, Federal Bank’s stock is anticipated to open with a maximum price of 451.57 and a minimum price of 347.36, setting the tone for the year ahead. As the months progress, there is an expectation for steady increases in both maximum and minimum prices. In February 2030, the stock is forecasted to see a rise with a maximum of 463.15 and a minimum of 356.27, followed by further gains in March 2030, reaching a maximum of 481.21 and a minimum of 370.16. The upward trajectory continues through the year, with Federal Bank’s stock projected to reach its peak in December 2030, with a maximum price forecasted at 539.73 and a minimum price at 415.18, indicating potential growth opportunities for investors. Throughout the year, stakeholders will likely monitor Federal Bank’s stock performance closely, considering various market dynamics and the bank’s strategic initiatives, as they navigate through the evolving investment landscape.
Financial Condition of Federal Bank: Last 5 years
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Revenue (Rs. Cr) | 11,635 | 13,590 | 14,314 | 14,382 | 17,812 |
| Interest (Rs. Cr) | 7,316 | 8,678 | 8,435 | 7,959 | 9,975 |
| Expenses (Rs. Cr) | 3,572 | 4,608 | 5,527 | 5,758 | 5,828 |
| Financing Profit (Rs. Cr) | 747 | 304 | 352 | 664 | 2,009 |
| Financing Margin (%) | 6% | 2% | 2% | 5% | 11% |
| Other Income (Rs. Cr) | 1,335 | 1,882 | 1,972 | 2,121 | 2,436 |
| Depreciation (Rs. Cr) | 122 | 126 | 115 | 139 | 182 |
| Profit Before Tax (Rs. Cr) | 1,960 | 2,060 | 2,209 | 2,646 | 4,263 |
| Tax (%) | 35% | 25% | 25% | 26% | 26% |
| Net Profit (Rs. Cr) | 1,318 | 1,590 | 1,680 | 1,996 | 3,210 |
| EPS (Rs) | 6.63 | 7.93 | 8.34 | 9.37 | 14.95 |
| Dividend Payout (%) | 21% | 0% | 8% | 19% | 7% |
Over the five years from 2019 to 2023, Federal Bank demonstrated a positive financial trajectory. Revenue consistently increased, reaching ₹17,812 Crores in the trailing twelve months (TTM) of March 2023. Despite fluctuations in interest and expenses, the financing margin exhibited growth, peaking at 11% in 2023.
Other income steadily rose, contributing to a substantial increase in profit before tax, which reached ₹4,263 Crores in 2023. The net profit also surged over the years, culminating in ₹3,210 Crores in the TTM of March 2023.
The Earnings per share (EPS) and dividend payout percentages reflect the bank’s robust financial performance.
FAQS
What is the market capitalization of the Federal Bank?
As of March 28th, 2024, Federal Bank has a market capitalization of ₹36,482 crore.
In 2025, Federal Bank is expected to trade within a range of ₹129.96 to ₹198.46.
Federal Bank is expected to trade ₹539.73 by the end of 2030.
Based on the financial statements, Federal Bank has shown a consistent growth in revenue and profit over the last five years, indicating a positive outlook for the bank’s future.
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Conclusion
Over the past five years, Federal Bank has consistently increased its revenue and profit, with compound annual growth rates (CAGR) of 11.8% and 18.9%, respectively. Over this time, the bank has also kept up a solid dividend payment ratio of about 20%.
Federal Bank’s share price target for the years 2024 to 2030, with a maximum price objective of Rs.539.73 and a minimum price target of Rs.131.93, represents a potential return on investment.
Federal Bank shares appear to be attractively valued with a price-to-earnings ratio of 9.44, and they present an alluring investment option for those looking for long-term growth potential.
Technically, the Federal Bank looks like it could change the trend and could correct by 20 to 30% in the near term. If that happens, it could be a good time to accumulate Federal bank for the long term.
What did we learn?
