Federal Bank Share Price: 32.6% CAGR in 3 Years as the Kerala Lender Outpaces AU Small Finance Bank and Axis Bank

Federal Bank previous close Rs 344.10. 3-year CAGR 32.6%. Up 2.3x since 9 Nov 2023. ROE 12.60%. Market cap Rs 84,954 crore.

The Federal Bank share price has more than doubled in three years, which is one of the strongest runs among Indian banks of its size. Federal Bank, headquartered in Aluva, Kerala, is a private sector lender with a strong base among non-resident Indian customers.

This article compares that run with AU Small Finance Bank and Axis Bank. We calculate the three-year CAGR for all three and set the results beside market cap, valuation and return on equity, using prices adjusted for corporate actions. Banks are best read on price to book and ROE, so those numbers get extra attention.

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How Much Has the Federal Bank Share Price Returned in 3 Years?

The Federal Bank stock closed at Rs 147.55 on 9 November 2023 and at Rs 344.10 on 9 November 2026. Rs 1 lakh invested three years ago would have grown to about Rs 2.33 lakh, which is a CAGR of 32.6%. This is a price return and leaves out dividends.

CAGR condenses a bumpy three-year ride into one yearly number, which is why it is the fairest way to compare companies of different sizes. A stock such as Federal Bank can look spectacular on a chart and still have earned a modest yearly return, so the compounded figure keeps the comparison honest.

The Federal Bank share price has also followed the steady expansion of its loan book, stronger retail and small business lending and improved profitability in recent years.

Federal Bank vs AU Small Finance Bank and Axis Bank: 3-Year CAGR Compared

The table ranks the companies by three-year CAGR. Prices on 9 November 2023 are adjusted for splits and bonuses, and the latest figures are the previous close on 9 November 2026.

Company	Close on 9 Nov 2023	Previous close (9 Nov 2026)	Price multiple	3-year CAGR
Federal Bank	Rs 147.55	Rs 344.10	2.3x	32.6%
AU Small Finance Bank	Rs 690.55	Rs 929.00	1.3x	10.4%
Axis Bank	Rs 1,021.90	Rs 1,310.70	1.3x	8.7%

The Federal Bank stock leads the group at 32.6%, followed by AU Small Finance Bank at 10.4% and Axis Bank at 8.7%. Federal Bank leads the group by a wide margin, followed by AU Small Finance Bank and then Axis Bank. Axis Bank is the largest of the three by market cap, so its yearly return came on a much bigger base.

Look at the Federal Bank share price alongside the peers as a snapshot of the last three years. It describes what happened, and valuation and earnings will decide what happens next.

Valuation and Quality Compared

Company	Market cap	P/E	Industry P/E	ROE	P/B
Axis Bank	Rs 4,08,279 crore	13.59	12.66	13.04%	1.78
Federal Bank	Rs 84,954 crore	15.76	12.66	12.60%	2.06
AU Small Finance Bank	Rs 69,764 crore	22.13	13.48	14.67%	3.25

By market cap, Axis Bank is the largest of the group at Rs 4,08,279 crore, while the Federal Bank stock stands at Rs 84,954 crore, about 21% of that size. On earnings, Federal Bank shares trade at a P/E of 15.76 against an industry P/E of 12.66, a premium of about 24%, which signals that the market expects faster earnings growth. Peer multiples are AU Small Finance Bank at 22.13 and Axis Bank at 13.59.

Return on equity is 12.60% for the Federal Bank stock, which ranks third among the three, and the price to book ratio stands at 2.06. Trailing EPS is Rs 21.79. Banks are valued on price to book and return on equity rather than on debt, so these two numbers show how the market prices each lender against the profit it earns on shareholders' capital.

What Is Driving the Federal Bank Stock?

Federal Bank has a strong presence in Kerala and a notable share of remittance and non-resident deposits. These funds are relatively stable and help the bank hold a steady funding base.

The bank has widened its lending to retail customers, small businesses and gold loans, and it has invested in digital channels. Growth in these segments has lifted profit and kept asset quality in check.

Followers of the Federal Bank share price usually track loan growth, net interest margin, the share of low-cost deposits and asset quality.

How the Established Players Stack Up

AU Small Finance Bank is a Jaipur-based small finance bank that began with vehicle finance and now serves retail and small business customers. It compounded at 10.4% a year, on a market cap of Rs 69,764 crore and an ROE of 14.67%.

Axis Bank is a Mumbai-based private sector bank with strength in corporate banking, retail lending and credit cards. It compounded at 8.7% a year, on a market cap of Rs 4,08,279 crore and an ROE of 13.04%.

What Should Investors Track Next?

Three things are worth watching on the Federal Bank share price. First, the pace of loan growth. Second, the cost of deposits and the movement in net interest margin. Third, asset quality in retail and small business loans.

At a P/E of 16 and a price to book of 2.06, the stock trades above the industry P/E of 13. A big three-year gain also means expectations are higher, so follow quarterly results closely.

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How to Compare Bank Stocks Yourself

You can repeat this exercise for any pair of stocks, including the Federal Bank stock against its peers. Note the adjusted closing price on the base date, take the latest close, divide one by the other, raise the result to the power of one third and subtract one. Then place the CAGR next to market cap, P/E against the industry P/E, ROE and debt to equity. Benchmark the result against the Nifty 50 as well, so you know whether the stock beat the broader market.

A stock that scores well on growth but weakly on quality, or the reverse, deserves closer study before it enters a portfolio. When tracking the Federal Bank share price, the same four checks give a more complete picture than price alone.

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A Mid-Sized Bank With the Strongest Return in Its Group

The Federal Bank share price compounded at 32.6% a year over three years, ahead of AU Small Finance Bank at 10.4% and Axis Bank at 8.7%. Its ROE is 12.60% and its price to book is 2.06.

AU Small Finance Bank brings a higher ROE and a retail focus, while Axis Bank brings scale and a lower P/E. The choice depends on which part of the banking sector you want to follow.

Frequently Asked Questions

What is the Federal Bank share price today?

Ans. Federal Bank closed at Rs 344.10 on 9 November 2026, according to NSE data. It has a market cap of Rs 84,954 crore and a P/E of 15.76. Check live quotes before acting, as prices change every trading day.

What is the 3-year CAGR of the Federal Bank stock?

Ans. Federal Bank delivered a price CAGR of 32.6% over three years, moving from Rs 147.55 on 9 November 2023 to Rs 344.10 on 9 November 2026. The figure excludes dividends and uses adjusted closing prices.

Is Federal Bank better than Axis Bank?

Ans. Federal Bank delivered a higher three-year CAGR at 32.6% than Axis Bank at 8.7%. Axis Bank is much larger by market cap at Rs 4,08,279 crore against Rs 84,954 crore, while Federal Bank has a similar ROE at 12.60% against 13.04% and a higher P/E of 15.76 against 13.59. The better choice depends on your view of each bank.

What does Federal Bank do?

Ans. Federal Bank is a private sector bank headquartered in Aluva, Kerala, with a strong retail franchise and a large base of non-resident Indian customers.

What is the return on equity of the Federal Bank stock?

Ans. The return on equity of the Federal Bank stock is 12.60% and its price to book ratio is 2.06. For a lender, ROE and the price to book ratio are the two numbers that show how well the bank turns shareholder capital into profit and how much the market pays for it. Always check the latest results for current figures.

Is Federal Bank expensive compared with the industry?

Ans. Federal Bank trades at a P/E of 15.76 against an industry P/E of 12.66. A higher multiple reflects expectations of faster growth, which the company must deliver through earnings.

Which bank stock gave the highest return in 3 years?

Ans. Among the companies compared here, Federal Bank delivered the highest three-year CAGR at 32.6%, followed by AU Small Finance Bank at 10.4%. Past returns do not guarantee future performance.

How do I calculate CAGR for a stock?

Ans. Divide the latest price by the starting price, raise the result to the power of one divided by the number of years, and subtract one. Multiply by 100 for a percentage. Use split and bonus adjusted prices for accurate results.