Share of Federal Bank Limited is currently trading at around Rs.205/– All investors are asking for the Federal Bank Share Price Target 2025. In this article, we will discuss about the business prospects and financial performance of Federal Bank Limited and based on our discussion and analysis will tell you the Federal Bank Share Price Target 2025 as well as targets from 2030,2035 and 2040.
Discussion & Analysis of Business & Financial performance with future business prospects of Federal Bank Ltd:
Federal Bank Limited has demonstrated robust financial performance in recent quarters, underscoring its strong position in the Indian banking sector. As of September 30, 2024, the bank’s total business reached ₹499,418.83 crore, marking a 17.32% year-on-year growth. This expansion was driven by a 15.54% increase in total deposits, amounting to ₹269,106.59 crore, and a 19.45% rise in net advances, totaling ₹230,312.24 crore.
In Q2 FY25, Federal Bank achieved its highest-ever operating profit of ₹1,565.36 crore, an 18.19% increase from the same period last year. Net profit for the quarter stood at ₹1,056.69 crore, marking the second consecutive quarter with net profits exceeding ₹1,000 crore. The bank’s net interest income grew by 15.11% to ₹2,367.23 crore, contributing to a total income of ₹7,541.23 crore, a 21.91% year-on-year increase.
Asset quality remained strong, with the Gross Non-Performing Assets (NPA) ratio at 2.09% and the Net NPA ratio at 0.57% as of September 30, 2024. The Provision Coverage Ratio, excluding technical write-offs, stood at 71.82%, reflecting prudent risk management.
Looking ahead, Federal Bank is poised for sustained growth. The bank plans to expand its nationwide presence by establishing 80-100 new branches annually over the next three years, focusing on regions such as Gujarat, Maharashtra, Tamil Nadu, and Karnataka. This strategic expansion aims to capitalize on lucrative opportunities beyond its home state of Kerala.
The recent appointment of KVS Manian as Managing Director and CEO, effective from September 2024, is expected to further strengthen the bank’s leadership. Manian’s extensive experience in corporate and commercial banking is anticipated to enhance Federal Bank’s growth and profitability in the medium term.
Analysts project that Federal Bank can achieve annual growth rates between 15% and 18%, outpacing market averages. This optimism is based on the bank’s strategic initiatives, strong financial performance, and commitment to innovation and customer service.
In summary, Federal Bank Limited’s solid financial results, strategic expansion plans, and experienced leadership position the bank favorably for continued growth and success in the evolving banking landscape.
Share Price Targets:
Federal Bank Share Price Target 2025
Based on the above discussion and analysis, the share price of Federal Bank may touch the level of around Rs.230-250 in 2025.
Federal Bank Share Price Target 2030
Based on the above discussion and analysis, the share price of Federal Bank may touch the level of around Rs.400-450 in 2030.
Federal Bank Share Price Target 2035
Based on the above discussion and analysis, the share price of Federal Bank may touch the level of around Rs.700-800 in 2035
Federal Bank Share Price Target 2040
Based on the above discussion and analysis, the share price of Federal Bank may touch the level of around Rs.1200-1500 in 2040.
Disclaimer: Investment in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
Read Also:
How to make maximum profit with minimum investment from the Stock Market ? – MoneyInsight
Also Read :
How to make money from share market? (indiatimes.com)
Visit our Website regularly for more such Educational Research Articles:
MoneyInsight – We Provide Insight to Your Money
