No, Federal Bank is not a nationalised bank in the country. It is not even a public sector bank. You see, still, it is among the largest private sector banks in the country, holding the 8th rank as of 2025 with an INR 488.66 billion market cap.
Brief History of Federal Bank
The Federal Bank was started on April 23, 1931, at Nedumpuram near Thiruvalla. Back then, it mainly catered to chit businesses and loans related to farming and small businesses.
Thereafter, with the effect of the Banking Regulation Act, the bank was renamed as Federal Bank Limited on 2 December 1949. Between 1963 and 1970, further growth was affected by the winding up of a few small local banks like Chalakudy Public Bank, Cochin Union Bank, and Alleppey Bank.
And sure enough, by 1970, Federal Bank was a Scheduled Commercial Bank. In 1994, it went public with its initial share offering. The bank also got into digital banking with the growth of technology and opened offices in Abu Dhabi (2008) and Dubai (2016) to increase its footprint, and it kinda has been successful at that so far.
Federal Bank’s Financial Health (FY 2024-25)
Sure, Federal Bank may not be the biggest private sector bank out there, but it is doing its part in the Indian banking scene, and surely, over the last few years, we have seen it expand quite a lot, like, as of March 31, 2025, here’s how the bank stands financially:
- Total income: ₹6,101.13 crore
- Net profit: ₹4,051.89 crore
- Total assets: ₹3,49,004.80 crore
- Capital adequacy ratio (Basel III): 16.40%
- Gross NPA: 1.84%
- Net NPA: 0.44%
- Provision coverage ratio: 75.37%
- CASA ratio (Current + Savings Account deposits): 30.2%
That is financial stability right there!
