Federal Bank share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Federal Bank share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned Federal Bank share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
Federal Bank Share Price Target 2022, 2023, 2024, 2025, and 2030: Company Profile
Federal Bank Limited is a major Indian commercial bank in the private sector having 1250+ branches and 1800+ ATMs/Recyclers spread across different states in India. The Bank is a pioneer among traditional banks in India in the area of using technology to leverage its operations and was among the first banks in India to computerize all its branches.
The Bank offers its customers, a variety of services such as Internet banking, Mobile Banking, Online bill payment, Fee collection, Depository services, Transaction Banking Services, Merchant banking services, Insurance, Mutual fund products, and many more as part of its strategy to position itself as a financial supermarket and to enhance customer convenience.
Net Interest Income
Federal Bank Share Price Target 2022
The Operating Profit of the Federal Bank is increased by 18.17% to 3786.90 Cr and the Net Profit of the Federal Bank is up by 3.08% to 1590.30 Cr. Healthy traction in core business streams has helped Federal Bank to have good momentum in core operating performance.
Net Interest Income improved by 19.03% to 5533.70 Cr while the Non-Interest Income stood at 1944.91 Cr. The total income of Federal Bank during the fiscal year 2021 recorded 3.70% growth to reach 15702.81 Cr. Income from advances increased by 1.16% to reach 10795.12 Cr. The yield on advances stood at 8.75% and the yield on Investments (excluding trading
gain) at 6.57%.
The Net Interest Margin for the fiscal year is at 3.16% as against 3.05%, in the previous year. Return on Average Equity and Return on Average Total Assets stood at 10.38% and 0.85% respectively. Earnings per Share (face value of 2 each) of the Bank, as of March 31, 2021, were 7.97. Book value per share had increased to 80.77 during FY 21.
On the CASA front, the Savings deposits touched 47686.29 Cr with 21.66% growth and Current deposits stood at 10684.19 Cr. Federal Bank registered a healthy CASA growth of 25.66% to reach 58370.48 Cr. CASA ratio of Federal Bank stood at 33.81%.
The Gross NPA of Federal Bank as of March 31, 2021, stood at 4602.39 Cr. Gross NPA as a percentage to Gross Advances is 3.41%. The Net NPA stood at 1569.28 Cr and this as a percentage to Net Advances is 1.19%. The Provision Coverage Ratio (including technical write-offs) stood at 77.65%.
Federal Bank is one of the best banks in the private sector with great quality management, good financials, and fundamentals. Federal Bank share price target for 2022 is Rs 130.
|Federal Bank Share Price Target 2022|
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Federal Bank Share Price Target 2023
The government of India and the Reserve Bank of India made many regulatory interventions to protect the health of the Indian Financial System. This included providing relief to the Banks as well as borrowers by offering the option of availing moratorium on loan repayments, restructuring of loans, slashing the repo rates to record lows, and opening up special credit lines to encourage the banks to lend more, especially to the MSME segments. These steps gave critical and momentary relief to India’s banking system.
The banks are the backbone of the economy, The Reserve bank of India will always be there to support banks if anything goes wrong. Considering the momentum in the next few years, the Federal Bank share price target for 2023 is Rs 172.
|Federal Bank share price target 2023|
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Federal Bank Share Price Target 2024
In FY 2021-22, given the growth in the economy and the base effect coming into play, bank credit is likely to increase. Based on the report of many research firms, higher deposit growth is expected in the range of 9-11% in FY 2021-22 to support credit growth of 8-10% in the said period. However, a subnormal monsoon and another surge in COVID-19 cases leading to localized or partial lockdowns in key states may impact the industrial as well as the service segments and pose downside risks to deposit and credit growth in FY 2021-22. Though, systemic support from RBI and the Government at various levels could give the much-needed fillip for growth.
By considering all the above factors, and growth opportunities for the banking sector, the Federal Bank share price target 2024 is Rs 230.
|Federal Bank share price target 2024|
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Federal Bank Share Price Target 2025
The near-term focus of the Federal Bank was in creating flexible plans to deal with the dynamic environment. Analytics and decision engines were continuously used to identify potential risk areas. Relentless emphasis was given to digital migration and digitization of internal processes. Federal Bank ensured continuous traction in relatively higher margin business. With the deposit franchise becoming stronger and granular, a tight vigil was kept on possible slippages, and focus was placed to strengthen the balance sheet.
The robust operating performance helped your Bank to increase the coverage ratios and set aside higher provisions for what could potentially need a higher requirement with the passage of time, should the environment continue to be fraught with risks. Despite many disruptions caused by the pandemic, your Bank continued to grow low-cost deposits as much as the gold loan business. Business banking and retail segments, which are heavily synchronized with and dependent on physical branches, have also started seeing good traction.
On the digital end, it was a very special year for Federal Bank as it not only made significant progress in our digital journey and utilized the digital route to conduct our daily tasks but also made momentous internal strides. Therefore, from all aspects, your Bank made meaningful progress during the financial year and ticked all the right boxes through a strategic, well-thought approach. Federal Bank share price target for 2025 is Rs 295.
|Federal Bank share price target 2025|
Federal Bank Share Price Target 2030
With stability and predictability in performance, best in class liability franchise, improved operating metrics, a shift in credit mix towards granular retail, top tier asset quality, and robust coverage ratios, Federal Bank believes that it has now earned the “ Right to Grow”. With the right tools and a robust strategy, Federal Bank aims to scale up to the next level of growth across all business segments, and eventually achieve the “Right to Win” in the next three to
The growth rates will be calibrated to the economic realities and emphasis will continue on sustained earnings during this period. As technology and digital take center stage, Federal Bank will continue to work towards ensuring customer convenience and be a front runner in launching various innovations with the objective to bring a positive influence in the way of doing business Committed to compliance and ever-improving risk management practices, Federal Bank is fully poised for high-quality performance and growth. Federal Bank share price target for 2030 is Rs 720.
|Federal Bank share price target 2030|
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Federal Bank Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Federal Bank Share Price Target|
|Federal Bank share price target 2022||Rs 130|
|Federal Bank share price target 2023||Rs 172|
|Federal Bank share price target 2024||Rs 230|
|Federal Bank share price target 2025||Rs 295|
|Federal Bank share price target 2030||Rs 720|
Frequently Asked Questions
Is it good time to invest in Federal Bank?
You can invest in Federal Bank at any time because Federal Bank is one the best bank in the private sector with quality management, good fundamentals, and financials.
Can we buy Federal Bank shares?
Yes, if you want to hold for the long term, then you can Federal bank shares without a second thought. Rakesh Jhujjhunwala also holds some shares of the Federal Bank.
Should we hold Federal Bank shares?
Yes, hold Federal Bank shares for long term, it may even give you multi-bagger returns in long run, as the bank is placed in a strong position with high-quality management, good fundamentals, and financials.