HDFC Securities Pick of the Week 25th Oct'26: Federal Bank Ltd

Federal Bank posted a strong Q2FY27 with healthy credit and deposit growth, stable NIMs at 3.3% and improved asset quality. Medium‑yielding segments like gold, LAP, commercial and cards drove advances, while FCNR mobilization boosted deposits.

Costs rose on branch, tech and ESOP charges but cost‑to‑income still improved. Overall momentum and benign delinquencies support a steady financial outlook with cautious monitoring of agri/MFI segments.