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Federal Bank Ltd. Key Financial Ratios

NSE:FEDERALBNK | BANKS

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Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2024 - FY 2025

Federal Bank Ltd.'s revenue grew 19.6% to 320.30B and net profit grew 7.2% to 41.59B YoY in FY2025, indicating healthy business momentum.

Understanding Company Performance

In FY 2025, Federal Bank Ltd.'s revenue grew by 19.6% year-over-year. Revenue = interest earned + other income. Gross Profit = revenue minus interest expenditure. Net Profit is the bottom line after all expenses, provisions, and taxes. Consistent growth across all three signals a healthy, expanding bank.

Net Interest Margin (NIM)

2-year trend showing profitability efficiency

FY 2024 - FY 2025

Federal Bank Ltd.'s NIM of 3.1% in FY2025 indicates healthy interest spreads.

Understanding Net Interest Margin

In FY 2025, Federal Bank Ltd. reported a NIM of 3.13%. NIM = (Interest Earned - Interest Paid) / Average Earning Assets. For Indian banks, 2.5-4% is typically healthy. Higher NIM indicates better spread management between lending rates and deposit costs. Consistent or improving NIM suggests strong pricing power.

Net NPA Ratio

2-year trend showing asset quality

Federal Bank Ltd.'s net NPA ratio of 0.4% in FY2025 indicates strong asset quality with well-managed credit risk.

Understanding Net NPA Ratio

In FY 2025, Federal Bank Ltd. reported a net NPA ratio of 0.44%. Net NPA Ratio = (Gross NPAs - Provisions) / Total Loans. Measures bad loans after provisions as a percentage of total loans. Below 2% is healthy for Indian banks; above 3-4% signals stress. A declining trend indicates improving asset quality and effective risk management.

Return on Assets (ROA) & Return on Equity (ROE)

2-year trend showing profitability efficiency

Federal Bank Ltd.'s ROA of 1.2% in FY2025 indicates efficient asset utilisation, with ROE at 11.7%.

Understanding ROA & ROE

In FY 2025, Federal Bank Ltd. reported an ROA of 1.15% and an ROE of 11.7%. ROA = (Net Income / Total Assets) x 100; ROE = (Net Income / Equity) x 100. The gap between ROE and ROA reveals leverage impact. For Indian banks, ROA of 0.8-1.5% and ROE of 12-18% are healthy. ROA is the primary indicator as it cannot be inflated by leverage.

Loan to Deposit Ratio

2-year trend showing liquidity and lending efficiency

Federal Bank Ltd.'s loan-to-deposit ratio of 86.4% in FY2025 indicates slightly above optimal but within manageable range.

Understanding Loan to Deposit Ratio

In FY 2025, Federal Bank Ltd. reported a loan-to-deposit ratio of 86.4%. LDR = (Total Loans / Total Deposits) x 100. Optimal range is 70-85% for Indian banks. Above 90% signals liquidity risk; below 65% suggests deposit underutilisation. A stable trend indicates balanced lending practices and adequate liquidity management.

Financial Leverage Ratio

2-year trend showing capital structure efficiency

Federal Bank Ltd.'s financial leverage of 10.2x in FY2025 indicates well-balanced capital structure within typical banking norms.

Understanding Financial Leverage Ratio

In FY 2025, Federal Bank Ltd. reported a financial leverage ratio of 10.2x. Financial Leverage = Total Assets / Total Equity. Expressed as a multiple (e.g., 10x). For Indian banks, 10-15x is typical. Higher leverage amplifies returns but increases risk. Regulatory capital requirements set upper limits. Compare with peers for context.

Borrowings to Networth Ratio

2-year trend showing leverage and financial stability

Federal Bank Ltd.'s borrowings-to-networth ratio of 91.9% in FY2025 indicates moderate borrowing levels.

Understanding Borrowings to Networth Ratio

In FY 2025, Federal Bank Ltd. reported a borrowings-to-networth ratio of 91.9%. Borrowings/Networth = (Total Borrowings / Shareholders' Equity) x 100. Lower is better — indicates less reliance on debt. Banks naturally carry higher leverage than other industries. Consistent increases may signal aggressive growth or capital constraints. Compare with peer banks for context.

Stock Dilution

Year-over-year change in diluted shares outstanding

Federal Bank Ltd.'s diluted shares increased 5.6% YoY in FY2025 — significant dilution that warrants concern.

Over 2 years (FY2024–FY2025), diluted shares increased 5.6% from 2.34B to 2.48B, indicating cumulative dilution.

Understanding Stock Dilution

In FY 2025, Federal Bank Ltd.'s diluted shares increased by 5.6% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025