Fedbank Financial Live Share Price Today, Share Analysis and Chart

About the company - Business Profile

Fedbank Financial Services Ltd. (Fedfina) is a retail-focused non-banking financial company (NBFC) catering primarily to Micro, Small, and Medium Enterprises (MSMEs) and self-employed individuals. As a subsidiary of Federal Bank, the company leverages its parentage to access diversified funding and maintains a strong presence in the secured lending space, specifically in gold loans and installments-based mortgage loans.

Key Points

• Key Facts: Founded in 1995 and headquartered in Mumbai, Maharashtra, Fedfina is a majority-owned subsidiary of Federal Bank (60.8% stake as of March 2026). The company is listed on the NSE and BSE and operates under an NBFC license granted by the RBI in 2010.
• Operations and Resources: As of March 31, 2026, the company operates a network of 757 branches across 17 states and union territories. Its operations are concentrated in South and West India, which account for approximately 75% of its Assets Under Management (AUM).
• Privatization and Ownership: The company is part of the Federal Bank group. Other significant shareholders include True North Fund VI LLP (7.3%) and institutional investors like Nuvama Private Investment and various mutual funds and insurance companies.
• Market and Significance: Fedfina targets the "Emerging India" segment, focusing on underbanked MSMEs. It holds a significant position in the gold loan market and is expanding its mortgage footprint, including Loan Against Property (LAP) and Housing Loans.
• Sustainability and Innovation: The company utilizes a "Digital-First, Branch-Light" expansion strategy, employing technology-led onboarding and API-based income checks to maintain leaner branch operations while scaling geographically.

Business Model and Performance

Fedfina operates a collateralized lending model, where 98.4% of its AUM is secured by either gold or property. It specializes in high-yield retail products and utilizes a "twin-engine" growth strategy focusing on Gold Loans and Mortgage Loans.

Revenue and Financial Summary (FY 2024-25):

• Total Revenue: ₹2,079.8 Crore
• Net Interest Income (NII): ₹1,070.8 Crore
• Profit After Tax (PAT): ₹225.2 Crore
• AUM Growth: Reached ₹15,812 Crore (36% YoY increase from FY 2023-24)

AUM Breakdown by Segment (as of March 31, 2026):

• Gold Loans: ₹10,352 Crore (51.4% of total AUM)
• Medium Ticket LAP: ₹5,570 Crore (27.6%)
• Small Ticket LAP and HL: ₹3,792 Crore (18.8%)
• Business Loans: Significant reduction due to 100% assignment and derecognition of the ₹886 Crore portfolio in H1 FY26.

Geographical Revenue/AUM Concentration: The top 5 states contribute 75.1% of the total AUM as of March 2026, reflecting a strategy of deep penetration in high-growth corridors.

Product and Service Highlights:

• Gold Loans: Average ticket size of ₹2.7 Lakhs with an average origination LTV of 70%.
• Mortgage Loans: Medium Ticket LAP average ticket size is ₹72.4 Lakhs, while Small Ticket LAP/HL averages ₹16.1 Lakhs.
• Technology: Implementation of integrated CRM and assessed income models for credit underwriting in the informal sector.

Operational Metrics:

• Employee Count: 5,085 employees (plus 372 apprentices) as of January 2026.
• Asset Quality: Gross Stage 3 assets (GNPA) stood at 1.9% as of Q3 FY26, with a Net NPA of 1.2%.
• Capital Adequacy: Strong CRAR of 20.5% (as of January 2026).
• Strategic Initiative: The company is shifting away from unsecured business loans (100% assignment in FY26) to focus purely on secured assets to strengthen the balance sheet.

References

1. Investor Presentation Jan 2026
2. Investor Presentation Apr 2026
3. Annual Report Apr 2025
4. Investor Presentation Oct 2025
5. Federal Bank Annual Report May 2024