Last Updated:July 01, 2025, 09:33 IST
Shares of Federal Bank will be in focus after the lender announced that its board has approved a comprehensive fundraising plan
Federal Bank Share Price
Federal Bank Share Price: Shares of Federal Bank will be in focus in Tuesday’s trade after the lender announced that its board has approved a comprehensive fundraising plan of up to Rs 6,000 crore through a combination of equity and debt instruments, subject to shareholder and regulatory approvals.
On the equity front, Federal Bank plans to raise capital through multiple instruments, including rights issues, preferential allotments, further public offerings (FPOs), qualified institutional placements (QIPs), global depository receipts (GDRs), American depository receipts (ADRs), foreign currency convertible bonds (FCCBs), or a combination of these options.
In addition, the board has approved fundraising via debt instruments such as Additional Tier I (AT1) bonds, Tier II bonds, long-term infrastructure and affordable housing bonds, masala bonds, green bonds, and non-convertible debentures (NCDs). These issuances may be undertaken through private placements in both domestic and international markets, staying within the bank’s approved borrowing limits.
Q4FY25 Results
For the quarter ended March 31, 2025, Federal Bank reported a 13.7% year-on-year (YoY) increase in net profit, reaching Rs 1,030.2 crore compared to Rs 906.3 crore in the same period last year.
Net interest income (NII) rose 8.3% YoY to Rs 2,377.4 crore, slightly below the Street’s estimate of Rs 2,431.9 crore. The bank’s net interest margin (NIM) improved to 3.12%, aided by better operational efficiency.
Asset quality also improved: Gross non-performing assets (NPAs) declined to Rs 4,375.5 crore from Rs 4,553.3 crore, while net NPAs fell to Rs 1,040.4 crore from Rs 1,131.2 crore. The gross NPA ratio improved to 1.84% from 1.95%, and the net NPA ratio eased to 0.44% from 0.49% quarter-on-quarter.
Federal Bank Stock Outlook
According to Trendlyne, the average analyst target price for Federal Bank is Rs 226, implying an upside of nearly 6% from current levels. Of the 34 analysts covering the stock, the consensus recommendation is a ‘Buy’.
From a technical standpoint, the Relative Strength Index (RSI) stands at 62.4, indicating neutral-to-positive momentum. The Moving Average Convergence Divergence (MACD) is at 2.2, remaining above both its center and signal lines — a bullish signal.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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