Honestly, if you’re searching for the "Federation Bank share price," you’ve probably hit a bit of a wall. It's one of those classic "wait, which one?" moments in the stock market. You see, there isn't actually a major global entity traded under the exact name "Federation Bank" on the big boards like the NSE, BSE, or NYSE. Most of the time, people are actually looking for Federal Bank (listed as FEDERALBNK in India) or perhaps a smaller regional player like First Federal Savings Bank.
Confusion is common. It happens. But if you’re putting your hard-earned money into a trade, you need the right ticker. Getting the name wrong by a few letters can mean the difference between tracking a mid-cap banking powerhouse and a local credit union.
Why the Federation Bank Share Price Search Often Leads to Federal Bank
The vast majority of search volume for this term actually belongs to The Federal Bank Ltd. As of mid-January 2026, Federal Bank has been making some serious noise in the private banking sector.
Let’s look at the actual numbers. On January 16, 2026, Federal Bank (FEDERALBNK) closed at ₹270.25 on the National Stock Exchange (NSE). That was a massive jump—about 9.48% in a single day. The stock hit an intraday high of ₹278.40, which is actually its 52-week high. If you were looking for "Federation Bank" because you heard about a "bank stock breakout," this is the one they were talking about.
Why the sudden surge?
Basically, the bank released its Q3 earnings for the 2025-26 fiscal year around January 15. The numbers were solid. We’re talking about a standalone net profit that surprised most analysts, paired with a net interest margin (NIM) that stayed healthy at around 3.1%. When a bank manages to grow its loan book while keeping bad loans (NPAs) under control, the market tends to reward it. Federal Bank’s Net NPA is sitting at a very clean 0.44% to 0.5%, which is better than many of its larger peers.
Breaking Down the Valuation: Is it Overpriced?
Numbers can be tricky. A price of ₹270 might seem "cheap" compared to HDFC Bank or ICICI, but share price alone doesn't tell you the value. You have to look at the Price-to-Earnings (P/E) ratio and Price-to-Book (P/B) value.
- P/E Ratio: Currently hovering around 14.96 to 15.5.
- P/B Ratio: Trading at roughly 1.8x its book value.
- Market Cap: Approximately ₹66,568 crore (roughly $8 billion USD).
Some analysts, like those at Kotak, are pretty bullish, setting price targets as high as ₹310. Others, like Morgan Stanley, have been more cautious, previously maintaining targets closer to ₹220, though those older reports are looking a bit dusty after this recent rally.
The reality is that Federal Bank isn't the "small" bank it used to be. It has over 1,400 branches. It’s a mid-cap player that is slowly graduating into the big leagues. But—and this is a big "but"—the cost-to-income ratio is still a bit high at 54%. That basically means they are spending a lot of money to make money. If they can bring that down, the share price has more room to run.
What About Other "Federation" or "Federal" Banks?
If you aren't looking for the Indian private bank, you might be looking at First Federal Savings Bank (often associated with NIDB). Their stock behaves very differently. As of January 16, 2026, their price was quoted around $21.98 in the US markets.
The volume there is tiny. We're talking an average daily volume of maybe 600-700 shares. If you try to buy $100,000 worth of that stock in one go, you'll move the price yourself. It's a completely different animal than the high-liquidity environment of the Indian Federal Bank, which trades millions of shares daily.
👉 See also: A Little Agency Melissa: What’s Actually Happening with the Digital Creative Scene
Common Misconceptions
- The "Fed" Connection: Some people think "Federation Bank" has something to do with the U.S. Federal Reserve. It doesn't. The Fed isn't a publicly traded company. You can't buy shares of the central bank on Robinhood.
- The London Listing: Federal Bank is actually listed on the London Stock Exchange as well, but via Global Depositary Receipts (GDRs) under the ticker FEDS. The price there is quoted in USD (around $0.92 per GDR).
Technical Indicators for the Near Future
If you’re a trader looking at the charts for the coming weeks in early 2026, the momentum is clearly "Strong Buy." The stock is currently trading well above its 50-day and 200-day moving averages.
The Relative Strength Index (RSI) is sitting near 62. For those who don't speak "chart," that means it's getting close to "overbought" territory (usually 70+), but it's not there yet. There’s still some "fuel in the tank," as they say. However, after a 9% jump in one day, a little bit of "profit-booking" (people selling to take their gains) is almost guaranteed. Don't be shocked if it dips back to the ₹260 range before trying to climb again.
📖 Related: The McBee Dynasty Family Farm Loan Default: What Really Happened to the $50 Million Empire
Actionable Steps for Investors
If you're looking to capitalize on the current trend or clear up the confusion around the federation bank share price, here is how you should actually proceed:
- Confirm the Ticker: If you are using a broker in India (like Zerodha or Groww), search for FEDERALBNK. If you are in the US or UK looking for international exposure, look for the GDRs under FEDS on the LSE.
- Watch the NPA Trends: The biggest risk for any bank is bad loans. Keep an eye on the "Gross NPA" percentage in the next quarterly report. Anything above 2% for this specific bank would be a red flag.
- Monitor Interest Rates: Banks love high interest rates... until they don't. If the central bank starts cutting rates too aggressively in 2026, the profit margins for banks like Federal Bank might get squeezed.
- Diversify: Don't put your entire "banking sector" budget into one mid-cap stock. Compare it against leaders like ICICI or Axis Bank to see if the risk-to-reward ratio actually makes sense for your portfolio.
The "Federation Bank" you’re looking for is likely the one currently hitting all-time highs under the "Federal" name. Just make sure you're looking at the right exchange and the right currency before you hit that buy button.