Motilal Oswal's research report on Federal Bank
Federal Bank (FB) hosted its analyst meet, presenting a strategic vision under the leadership of MD & CEO Mr. KVS Manian to position itself among the top five private sector banks in India. With a legacy spanning over 93 years, a dominant presence in Kerala, and a refreshed focus on becoming a more comprehensive bank, FB is charting a path of sustainable growth, profitability, and technological advancement. The bank’s roadmap emphasizes scaling its operations prudently by prioritizing better-yielding loans, enhancing its liability franchise, and leveraging digital capabilities.
Outlook
We expect FB to deliver an earnings CAGR of 19% over FY25-27 with an RoA/RoE of 1.3%/14.6% by FY27. We reiterate our BUY rating with a TP of INR225 (premised on 1.4x Sep’26E ABV).
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