Why is Federal Bank falling/rising?

Aug 28 2025 09:20 PM IST
share
Share Via
As of 28-Aug, Federal Bank Ltd is priced at 192.60, showing a slight increase but trading below key moving averages and experiencing a 3.60% decline over the past week. Despite strong lending practices and backing from institutional investors, recent negative earnings reports and high valuation concerns have led to volatility and underperformance compared to the benchmark Sensex.
As of 28-Aug, Federal Bank Ltd is currently priced at 192.60, reflecting a slight increase of 0.3 or 0.16%. The stock has shown a trend reversal by gaining after three consecutive days of decline, outperforming its sector by 1.4%. However, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has decreased by 3.60%, while its year-to-date performance shows a decline of 3.65%. Despite these short-term challenges, the bank has strong lending practices with a low Gross NPA ratio of 1.91% and a robust long-term growth trajectory, evidenced by a 20.15% CAGR growth in net profits. Nevertheless, negative results reported for June, including a significant drop in profit before tax and profit after tax, along with an expensive valuation, have raised concerns among investors.

In the broader market context, Federal Bank's recent performance has been weaker than the benchmark Sensex, which has declined by 2.34% over the same week. While the stock has outperformed the sector today, its longer-term returns indicate a decline of 6.55% over the past month, contrasting with the Sensex's drop of only 1.00%. The high institutional holdings at 75.04% suggest that knowledgeable investors are backing the stock, but the overall negative sentiment from recent earnings reports and the stock's expensive valuation relative to its peers may be contributing to its volatility.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News