Federal Bank Limited is India’s one of the major commercial private sector bank, there are around 11.5 million happy customers are associated with the Federal Bank, as per the Federal bank data, there is around 1.5 million NRI customer who has an account in this bank.
In this guide, we will see the Is Federal Bank Safe? for the customer or share for the shareholders. The Federal Bank has around 1300 plus branches all over India, their headquarter situated in Kochi.
The bank has around 1500 plus ATM services for their customer’s convenience, the Federal bank Limited provides many banking services like Mobile Banking, SMS banking, Internet Banking, USSD banking.
The Federal Bank follows all the RBI’s guidelines and rules, the federal bank stands at 8th position as per the peer comparison in Private sector banks.
Now let us talk about the Federal bank’s financial status means how strong is a federal bank is?, the current stock value of the bank is around Rs. 86.50, there are some good things in federal bank financial which we explain follow one by one:
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Is federal bank safe: Financial status
- Good Things:
- The stock trading at 1.05 times its book value
- The company has delivered a good profit of 27.86% CAGR (Compound Annual Growth Rate) over the last five years
- Bad Things:
- The company has a low-interest coverage ratio
- The company has a low return on equity of 10.64% for the last 3 years
- Contingent liabilities of Rs. 40404.23 Cr.
Federal Bank Share Review:
If any commercial private sector bank launched their IPO for public and for financial institute then the bank must have the majority stake for there self, but in this case, the Federal bank doesn’t have their own bank stakes, the shareholding data like this:
- FIIs has 24.51%
- DIIs has 43.29%
- The public has 32.20%
So as per our analysis, investing in Federal Bank is very risky because the bank holds no stake in the bank, so the rest depends on you, you have to do your studies and take your own decision.
Disclaimer: All the information we provide here for study purposes only, we just try to provide the real information to our reader all the information and stake pattern we collect from the Screener.in, by using these sites you can analyze the company is good for investing or not.
In this guide, we discussed Is Federal Bank safe? we also mentioned the things require to check bank financial status.
By using the above methods you check how strong is a federal bank, please let us know if you have any queries regarding the article.