FEDERAL BANK SHARE PRICES, TODAY AND HISTORY
Federal Bank is the most renowned private sector bank in India. It has been maintaining a strong position in the retail and SME sector since 1931. Initially established as the Travancore Federal Bank in Nedungad, Kerala, Federal Bank is renowned for offering customer-centric services and this has attracted investor interest and confidence in the bank. Federal Bank was listed on Indian stock exchanges during the 1990s. This marked the beginning of its journey as a publicly traded company. Since then, its share price has witnessed a steady growth, adjusting to market trends.
This article explores Federal Bank’s share price history along with its current performance in the stock market.
History of Federal Bank
Since making its stock market debut, Federal Bank has created long-term value through its focus on digital advancements and stable earnings performance. It has faced major financial issues such as the 2008 global crisis, demonetization and the COVID-19 pandemic. Initially a regional bank, it has now grown into an institution that has over 1,400 branches spread all across the country. Its cyclical patterns suggest that periods of falling interest rates prove beneficial to the bank, while periods of high inflation lead to downfall.
Here is a table showing Federal Bank’s historical performance between the years 2000 and 2025.
|
Year |
Annual Returns |
|
2000 |
-4.49% |
|
2001 |
-16.49% |
|
2002 |
101.26% |
|
2003 |
208.42% |
|
2004 |
76.90% |
|
2005 |
9.31% |
|
2006 |
-7.53% |
|
2007 |
158.23% |
|
2008 |
-51.52% |
|
2009 |
39.49% |
|
2010 |
68.40% |
|
2011 |
-16.66% |
|
2012 |
59.68% |
|
2013 |
-22.12% |
|
2014 |
75.78% |
|
2015 |
-25.38% |
|
2016 |
17.38% |
|
2017 |
64.27% |
|
2018 |
-14.21% |
|
2019 |
-5.43% |
|
2020 |
-24.85% |
|
2021 |
21.97% |
|
2022 |
59.46% |
|
2023 |
13.40% |
|
2024 |
27.77% |
|
2025 |
9.08% |
An analysis of this data suggests that Federal Bank’s share price saw many fluctuations over the period of 25 years. The early 2000s, particularly the years 2002 and 2003, were marked by extraordinary gains with returns more than 100%. The years 2007, 2010, 2014, 2017 and 2022 showed strong positive trends in Federal Bank’s share price.
However, global and domestic challenges, including the 2008 financial crisis and the COVID-19 pandemic in 2020, declined the stock’s performance. Since 2021, the bank has shown a solid recovery, a steady growth and regular positive returns.
Current Performance Status of Federal Bank’s Share Price
Currently, Federal Bank’s shares trade around Rs. 161. After the announcement of Q4 results, the bank has generated a net profit of Rs.1,150 crore. Federal Bank has shown an 18% growth in lending, improved by SME lending and gold and home loans. Since Federal Bank has expanded its roots in the digital economy, it is generating higher profits. Moreover, its recent collaboration with fintech institution is supporting long-term growth.
Factors influencing Federal Bank’s Share Price
-
Quarterly Earnings: Greater earnings support loan recovery, boosting investor interest and confidence. For instance, in Q4 FY25, the bank witnessed a 23% YOY rise in PAT, generating about Rs. 1,150 crore. Low earnings usually lead to underperformance.
-
Credit Growth and Interest Rates: Greater loan rates and decreasing interest rates attract more borrowers and generate more profit. However, reduced interest rates negatively impact stock performance.
-
Asset Quality: Fewer bad loans suggest efficient loan recovery and higher risk management. A larger number of bad loans reduces investor confidence, leading to a drop in share price.
- RBI Regulatory Policies: Flexible RBI policies lead to a positive trend in share price. Changes in policy tools like the repo rate and cash reserve ratio impact how much it costs banks to borrow and lend. Stringent decisions such as imposing limits on digital services can reduce investor interest.
-
Digital Transformation: Federal Bank’s recent expansion into the digital economy has helped with long-term growth. Its collaboration with Fintech has also attracted young customers, strengthening its market position.
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Conclusion
Since Federal Bank’s IPO launch, Federal Bank has shown a consistent growth in the stock market. It has been providing customer-oriented services and gaining investor confidence and interest. Although it has faced economic declines in the past years, it has always made a recovery with a controlled risk strategy. Its recent expansions into the digital economy and partnerships with institutions like Fintech have become catalysts supporting long-term growth.
