Federal Bank Adjusts Valuation Grade Amid Competitive Private Banking Landscape

Federal Bank has recently undergone a valuation adjustment, reflecting its current financial metrics and market position. The bank's price-to-earnings ratio stands at 11.33, while its price-to-book value is recorded at 1.42. The PEG ratio is noted at 2.40, and the dividend yield is 0.66%. Key performance indicators include a return on equity (ROE) of 12.49% and a return on assets (ROA) of 1.17%. Additionally, the net non-performing assets (NPA) to book value ratio is 3.60.
In comparison to its peers, Federal Bank's valuation appears more favorable. HDFC Bank and ICICI Bank are positioned at higher valuation levels, with PE ratios of 19.52 and 19, respectively. Axis Bank and Kotak Mahindra Bank also reflect higher valuations, while IndusInd Bank and Yes Bank show attractive metrics, but with varying performance indicators. Federal Bank's recent performance has shown resilience, particularly over the one-year and three-year periods, where it outperformed the Sensex index. This adjustment highlights the bank's competitive standing within the private banking sector.