S&P Lowers India’s FY26 GDP Growth Forecast to 6.3% Amid US Tariff Concerns

In its latest report titled “Global Macro Update: Seismic Shift In US Trade Policy Will Slow World Growth,” S&P Global Ratings has revised India’s GDP growth forecast for FY2025-26 from 6.5% to 6.3%. The downgrade of 20 basis points stems from escalating uncertainty over US tariff policies and the broader repercussions these may have on global trade sentiment and emerging economies.

S&P’s caution reflects not just India’s domestic economic dynamics but also the increased vulnerability of interconnected markets to global protectionist measures.

Trade Tensions and Tariff Risks

The downward revision is directly tied to fears surrounding a potential seismic shift in US trade policy. According to S&P, the US’s evolving stance on tariffs—especially the likelihood of renewed trade tensions—poses downside risks that could spill over into the Indian economy. “We reiterate that there are no winners in a scenario of escalating protectionist policies.”
 – S&P Global Ratings

The agency noted that while the current impact has been largely seen in financial variables such as asset prices and confidence indices, signs of weakening real economic activity, especially in global trade flows, are emerging.

India’s Medium-Term Projections Hold Steady

Despite the near-term trim, S&P projects India’s GDP growth to recover modestly to 6.5% in FY2026-27, assuming that external shocks begin to stabilise and domestic economic fundamentals remain resilient.

The report also flagged that risks to this baseline remain “firmly on the downside,” particularly if the global trade environment deteriorates further due to stronger-than-expected spillover effects from tariff escalations.

Exchange Rate Outlook: INR Likely to Weaken Further

In addition to its GDP estimates, S&P shared projections for the INR/USD exchange rate, forecasting the rupee to weaken to ₹88 per US dollar by the end of 2025, from ₹86.64 projected for 2024. Currently, the rupee is hovering around the ₹84 mark.

This forecast accounts for increased volatility in the forex markets, primarily driven by shifting investor sentiment and capital flows in response to the US’s trade posture.

Regional Impact: China Faces Sharper Decline

S&P’s outlook was not limited to India. The agency expects China’s economic growth to slow significantly, projecting a decline of 0.7 percentage points, bringing its growth down to 3.5% in 2025 and further to 3% in 2026. This slowdown in Asia’s largest economy could ripple across supply chains and affect regional trade partners, including India.

The US Tariff Strategy: 3 Distinct Buckets

S&P categorised the potential US tariff strategy into three “buckets”, with China being treated as a distinct case. This approach reflects long-standing geopolitical rivalries, especially regarding bilateral trade imbalances and perceived unfair trade practices.

While the broader global economy has so far only seen nominal effects from the tariff announcements, such as asset price volatility and confidence dips, S&P flagged early signs of real impact. For instance, goods shipments from China have recently shown signs of contraction, suggesting that the protective trade stance may now be affecting actual economic flows.

Read More: World Bank Revises India’s FY26 GDP Projection to 6.3% Amid Global Uncertainties

Conclusion

As the global trade landscape continues to evolve, the full extent of the US tariff policy’s impact is yet to be seen. While India’s fundamentals remain relatively stable, external risks—particularly those stemming from a slowdown in global demand and capital outflows—could weigh on growth and currency stability.

In this context, the trimmed GDP forecast by S&P signals the need for heightened vigilance over the coming quarters.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Gratuity Calculations for Government Employees: Estimating Payout for ₹75,000 Basic Pay and 25 Years of Service

Gratuity is a financial reward granted by the government to its employees as a token of appreciation for their long and dedicated service. It is payable upon retirement, resignation, or death, provided the individual has completed at least five years of continuous service. For government employees, this payment is not only a mark of recognition but also a crucial component of their post-retirement corpus.

Eligibility Criteria for Gratuity

To qualify for gratuity under government service rules, an employee must fulfil the following conditions:

  • Must have completed a minimum of 5 years of uninterrupted service

  • Should retire, resign, or be terminated under eligible circumstances

  • In case of death or disablement, the 5-year rule is waived

This benefit is applicable to both central and state government employees, subject to respective service rules.

Maximum and Minimum Gratuity Limits

As per the latest update effective from 1 January 2024, the maximum gratuity payable to a central government employee has been revised to ₹25 lakh, up from the earlier cap of ₹20 lakh.
 Importantly, there is no minimum limit—the amount depends entirely on years of service and last drawn salary.

Formula for Gratuity Calculation

Under the Payment of Gratuity Act, for employees covered under the Act, the formula is:

Gratuity = (n × b × 15) / 26

Where:
 n = Completed years of service
 b = Last drawn basic salary + DA
 15/26 represents 15 days’ wages for each year of service, with 26 being the average number of working days in a month.

Example: Gratuity for ₹75,000 Basic Pay and 25 Years of Service

Let’s apply the formula to a government employee with:

  • Last drawn basic pay + DA = ₹75,000

  • 25 years of qualifying service

Using the Payment of Gratuity Act formula:
 Gratuity = (25 × 75,000 × 15) / 26 = ₹10,81,731 (approx)

While both calculations are indicative, the applicable formula depends on whether the employee is under the Gratuity Act or governed strictly by Central/State Government rules.

Read More: Gratuity Calculation: What Will Be Your Gratuity for ₹50,000 Last-Drawn Salary and Will This Be Taxable?

Conclusion

Gratuity is a statutory right and a valuable component of post-retirement financial planning for government employees. Knowing how it is calculated helps in better understanding one’s retirement benefits and planning future finances accordingly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

BSE Seeks SEBI Approval to Introduce Monthly Derivative Contracts on Additional Indices

The Bombay Stock Exchange (BSE) has approached the Securities and Exchange Board of India (SEBI) seeking approval to introduce monthly derivative contracts for additional indices. According to reports, the proposed expansion includes a few thematic indices, marking another strategic move by the exchange to boost its presence in the competitive futures and options (F&O) space.

Regulatory Hurdles May Delay Approval

While BSE’s proposal is a significant step, regulatory clearance may not come swiftly. Market sources indicate that SEBI is currently evaluating several broader changes in the F&O framework. These include modifications in delta calculations and proposals to limit weekly expiries to just 2 days. These evolving regulatory dynamics may delay BSE’s plans.

New Indices Introduced Since September 2024

Since September 2024, BSE has introduced about 20 new indices, focusing on different market capitalisation tiers, sectoral themes, and weightings. These indices are designed to cater to various investor and institutional strategies, providing diverse benchmarking tools and passive investment options.

Applications Across Financial Products

The newly launched indices hold potential utility across a wide spectrum of financial instruments. These include:

  • Benchmarking for mutual fund (MF) schemes

  • Portfolio Management Services (PMS) strategy evaluation

  • Underlying structures for passive products like Exchange Traded Funds (ETFs) and index funds

SEBI’s Criteria for Monthly Derivatives

SEBI mandates strict eligibility norms for indices to be included in the monthly derivatives segment. Key criteria include:

  • Stocks representing at least 80% of the index weight must be individually eligible for derivatives trading.

  • No single ineligible stock should constitute more than 5% of the index weight.

  • Additional regulatory conditions must also be satisfied for approval.

These measures are in place to ensure liquidity, risk containment, and product relevance in the derivatives space.

Current Status of BSE’s Monthly Contracts

As of now, BSE offers monthly derivative contracts on three indices:

The addition of more indices would potentially diversify BSE’s derivative offerings and provide a broader suite of products for hedging and speculation.

Conclusion

BSE’s proposal to extend monthly contracts to more indices reflects its intent to grow its F&O segment footprint. However, regulatory scrutiny and evolving market frameworks may influence the pace and outcome of this expansion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

HRA Tax Exemption Explained: Save up to ₹1.5 Lakh Even Without Paying Rent to a Landlord for FY25

House Rent Allowance (HRA) is a component of a salaried employee’s income designed to provide tax relief if the individual resides in a rented house. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be exempted from income tax, subject to certain conditions.

Can You Claim HRA Without Paying Rent to a Traditional Landlord?

Yes, under the provisions of the Income Tax Act, even if you reside in a property owned by your parents or relatives, you may still claim HRA exemption—provided rent is genuinely paid and all conditions are met.

Conditions to Claim HRA While Living with Parents or Relatives

To lawfully claim HRA in such a setup, the following rules must be observed:

Property Ownership

The house should not be registered in your name. It must legally belong to your parent(s) or relative to whom you are paying rent.

Actual Rent Payment

Rent must be paid regularly and not just on paper. Payments should ideally be made via bank transfer or cheque to create a clear transaction trail.

Rent Agreement

Draft a formal rent agreement stating the rent amount, duration, and terms. This adds credibility to your claim and is useful during scrutiny.

Rent Receipts

Collect monthly rent receipts as evidence. These may be requested by your employer or during income tax assessment.

Tax Implication for the Recipient

The rent paid to your parents or relatives is considered their income and must be reported in their Income Tax Return (ITR). However, if your parents are senior citizens and their income falls below the basic exemption limit, they may not be liable to pay tax on it.

HRA Exemption Calculation: 3 Key Factors

The exempt portion of HRA is determined by the lowest of the following:

  1. Actual HRA received from your employer during the financial year.

  2. Rent paid minus 10% of your salary (basic + DA).

  3. 50% of salary if you live in a metro city (like Mumbai or Delhi) or 40% for non-metros

Let’s update and explain the HRA exemption calculation step by step for Mr. XYZ

Location: Mumbai (a metro city) → eligible for 50% limit (metro cities get 50%, others get 40%)

Basic Salary: ₹50,000 per month → ₹6,00,000 per annum

DA (Dearness Allowance): ₹5,000 per month → ₹60,000 per annum (forms part of salary)

HRA Received: ₹1,50,000 annually

Rent Paid: ₹25,000 per month → ₹3,00,000 per annum

To calculate the HRA exemption for Mr. XYZ under Section 10(13A), the following 3 conditions are evaluated, and the least of these is allowed as an exemption:

  1. Actual HRA received – Mr. XYZ received ₹1,50,000 as HRA from his employer during the financial year.

  2. 50% of salary (basic + DA) – Since he resides in Mumbai, a metro city, 50% of his annual salary (₹6,00,000 basic + ₹60,000 DA) amounts to ₹3,30,000.

  3. Rent paid minus 10% of salary – The annual rent paid is ₹3,00,000, and 10% of his salary (₹6,60,000) is ₹66,000, so the excess rent paid comes to ₹2,34,000.

Among the 3, the lowest is ₹1,50,000, which is fully exempt from income tax.

This means you could potentially claim up to ₹1.5 lakh or more as exempt from tax if the conditions and supporting documents are in place.

Read More: HRA Tax Exemption: Can You Claim It for Society Maintenance Charges?

What About the Self-Employed?

It’s important to note that self-employed individuals are not eligible for HRA under Section 10(13A). However, they can claim rent-related deductions under Section 80GG, subject to separate conditions.

Conclusion

Living with your parents or relatives doesn’t disqualify you from claiming HRA exemption—as long as you’re genuinely paying rent and maintaining proper documentation. This provision offers a significant tax-saving opportunity for salaried individuals, particularly when structured correctly and in full compliance with tax rules.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NSE Launches Nifty Waves Index to Track Media and Entertainment Sector

The National Stock Exchange of India (NSE) has unveiled a new thematic index known as the Nifty Waves Index. This strategic move is designed to reflect the performance of 43 publicly listed entities operating within the country’s diverse and rapidly evolving media and entertainment industry.

Composition Reflects Sectoral Diversity

The Nifty Waves Index encompasses a wide range of constituents representing various verticals of the media and entertainment landscape. These include television broadcasters, film production companies, digital content platforms, music labels, and gaming enterprises. By covering this spectrum, the index offers a comprehensive view of the industry’s market performance.

All Indian-listed stocks on the NSE from relevant sectors are eligible for inclusion. The weight of each stock within the index is determined by its free-float market capitalisation, with an individual cap of 5% to ensure balanced representation.

Benchmark for Focused Investment

This newly introduced index aims to serve as a benchmark for asset managers and investors seeking focused exposure to the dynamic and evolving media and entertainment sector. Its thematic approach is tailored for those tracking industry trends or managing sector-specific investment strategies.

According to NSE, the base date of the index is April 1, 2005, with a base value of 1000. It is reconstructed semi-annually and rebalanced quarterly.

Read More: NSE Revises Market Lot Sizes for Key Derivatives Effective April 25, 2025

Conclusion

The launch of the Nifty Waves Index by the NSE marks a significant development in the Indian financial market. It provides a focused lens on one of the most vibrant and fast-changing sectors, reinforcing the growing recognition of media and entertainment as a vital component of the economy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Zaggle Prepaid Signs Agreement with Aster DM Healthcare for Employee Expense Management

Zaggle Prepaid Ocean Services Limited has signed a 1-year agreement with Aster DM Healthcare Limited to offer its “Zggle Save” to Aster DM Healthcare Ltd. which can be used for managing employee expenses.

Nature and Terms of the Contract

Under the agreement, Zaggle will offer its product “Zaggle Save” to Aster DM Healthcare. This service includes tools for managing employee expenses and providing benefits. The deal is valid for one year and is domestic in nature.

The exact size or financial value of the contract is not mentioned. However, it is confirmed that the deal is not a related party transaction and no promoter or group company has any interest in Aster DM Healthcare.

About the Companies

Zaggle Prepaid Ocean Services Limited is a fintech company that offers digital payment solutions, including tools for managing employee expenses and rewards. One of its key products, “Zaggle Save,” helps businesses track and control employee spending while offering benefits and incentives. 

Aster DM Healthcare Limited is a leading healthcare provider in India and abroad, running a network of hospitals, clinics and pharmacies. Known for delivering quality medical services, Aster DM focuses on affordable and accessible healthcare across its locations.

Read More: Zaggle Prepaid Ocean Services Signs Agreement with Truecaller International

Share Performance 

As of May 02, 2025, at 12:20 PM, with a market capitalisation of ₹43.40 billion, Zaggle Prepaid Ocean Services Ltd share price is trading at ₹322.80 per share, reflecting a surge of 0.39% from the previous closing price. Over the past month, the stock has declined by 9.06%. The stock’s 52-week high stands at ₹591.90 per share, while its low is ₹234.50 per share.

Conclusion

This partnership marks a step forward for Zaggle in expanding its employee expense management services. The agreement strengthens Zaggle’s business portfolio without involving any conflict of interest or related party issues.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

OYO Ventures into F&B with In-House Kitchens and QSR Carts

According to the news reports, OYO has unveiled its plans to venture into the food and beverage (F&B) space by introducing in-house kitchens and Quick Service Restaurant (QSR) carts or lobby stores at its company-serviced hotels. With a primary focus on the Townhouse by OYO branded properties, the company aims to elevate the in-hotel dining experience and generate additional revenue streams across its hospitality portfolio.

Flexible Kitchen Models for Guest Convenience

As part of this initiative, OYO announced that it will implement in-house kitchen services at 1,500 company-serviced hotels in FY26. These kitchens will enable guests to conveniently order meals via online travel agencies (OTAs) and the OYO app by selecting the “Kitchen Services” option. The company clarified that kitchen formats would be tailored to each hotel, ranging from full-fledged commercial kitchens offering extensive menus to compact pantry setups for basic food items, depending on the hotel’s profile and infrastructure.

Townhouse Café to Offer Regional and Continental Menus

In addition to the kitchens, OYO is set to launch QSR carts and lobby-based stores branded as ‘Townhouse Café’. These outlets will serve well-priced meals featuring regional and continental dishes. The pilot programme, which commenced in January 2025, has already been rolled out in 100 company-serviced hotels across Delhi, Gurgaon, Hyderabad, and Bangalore. This successful trial has laid the groundwork for a nationwide rollout in the upcoming fiscal year. The company is also building a network of “trusted F&B experts” in cities including Delhi, Mumbai, Bangalore, Hyderabad, Pune, Indore, Kolkata, Jaipur, and Lucknow to support the initiative.

Conclusion

OYO anticipates that its F&B venture will contribute an additional 5%-10% revenue at the hotel level on a stable state basis. Varun Jain, Chief Operating Officer, OYO, stated that the initiative aims to enhance the in-hotel dining experience for guests by offering “fresh”, “convenient”, and “quality” meal options across its network.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

GR Infraprojects Executes Concession Agreement with NHAI for ₹4,263 Crore Greenfield Highway Project

G R Infraprojects Limited has informed the stock exchanges that its wholly owned subsidiary, Agra Gwalior Highway Private Limited, has entered into a significant concession agreement with the National Highways Authority of India (NHAI), under the Ministry of Road, Transport and Highways.

The agreement was executed on April 30 2025, and pertains to the development of a critical highway infrastructure project spanning across three Indian states—Uttar Pradesh, Rajasthan, and Madhya Pradesh.

Project Overview and Scope

The project, under the NHAI’s National Highways (Original) scheme, involves the construction of a greenfield highway and related infrastructure improvements, divided into 2 major components:

Section 1: New Greenfield Highway Construction

This includes the development of a 6-lane access-controlled highway starting from village Deori in Agra district (design km 0+000) and extending to village Susera in Gwalior district (design km 88+400). The stretch covers parts of Uttar Pradesh, Rajasthan, and Madhya Pradesh.

Section 2: Overlay and Safety Works

This part of the project entails strengthening and safety upgrades on the existing Agra-Gwalior section of NH-44, specifically from km 1058.00 to 1148.00 (design chainage 13.00 to 103.00), enhancing the overall efficiency and safety of the highway corridor.

Financial and Operational Details

  • Estimated Project Cost: ₹4,262.78 crore (inclusive of GST)

  • Mode: DBFOT model (Design, Build, Finance, Operate and Transfer) under BOT (Toll)

  • Execution Timeline: 910 days from the appointed date

This large-scale infrastructure project aims to boost connectivity and reduce travel time across major trade and transit routes between North and Central India.

Read More: PNB Housing Finance Share Price Surges 8% as Carlyle Sells Entire Stake. 

GR Infra Share Price Reaction

Following the announcement, GR Infraprojects’ share price was trading higher by 0.43% as of 12:17 PM on May 2, 2025. 

Conclusion

The agreement marks another step in GR Infra’s continued expansion in highway development under the PPP model. With this concession in place, the company strengthens its footprint in high-value road infrastructure across India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Retail Rush Turns Risky: Over 1 Lakh Investors Trapped in Gensol Engineering Shares

In the March 2025 quarter, retail investors made a significant move in Gensol Engineering, a company now mired in controversy. As per the latest shareholding data, the number of retail investors surged by 13,443 to 1,04,458, up from 91,015 in the December 2024 quarter. These investors, typically defined as those holding equity worth up to ₹2 lakh, collectively acquired 28.88 lakh shares during this period.

Their cumulative stake increased from 23.44% to 30.68%, reflecting growing retail participation despite rising concerns over the company’s internal affairs.

Promoter Shareholding Drops Sharply

While retail participation rose, Gensol Engineering’s promoters were heading in the opposite direction. Promoter stake saw a steep decline, dropping from 62.65% in the December quarter to 35.87% by the end of March 2025.

Individually, Anmol Singh Jaggi reduced his holding from 21.20% to 12.32%, and Puneet Singh Jaggi from 18.39% to 10.47%. The decline in promoter confidence raised further questions about the company’s stability and governance practices.

High-Net-Worth Individuals Trim Presence, But Holding Rises

Interestingly, while the number of high-net-worth individuals (HNIs) in the shareholder list fell from 111 to 48 quarter-on-quarter, their total holding rose from 7.10% to 10.15% by March 2025. This indicates that a smaller group of HNIs increased their exposure even as others exited amid uncertainty.

The diverging moves between retail investors and institutional/wealthy investors continue to highlight the risk gap in access to information and exit opportunities.

Read More: Gensol Engineering Share Price in Focus Amidst ED Raids: Investors Worry as Stock Crashes 92% From Its Peak. 

Stock Plunges Amid ED Raids and Lower Circuit Freeze

Gensol Engineering shares have witnessed relentless selling pressure since late February. On May 2, the stock hit yet another 5% lower circuit and dropped to a fresh 52-week low, extending its fall in back-to-back sessions with only sell orders visible on the exchange.

Adding to investor woes, the company confirmed that the Directorate of Enforcement conducted search operations at its offices in Gurgaon and Ahmedabad, seizing documents and electronic devices. Gensol stated that the financial impact of these actions is yet to be determined.

Conclusion

The sharp increase in retail investor participation in Gensol Engineering during a period of crisis has left many trapped in a stock that continues to decline with limited exit options. With promoter stake declining and investigations underway, the future remains uncertain for over a lakh retail shareholders.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Federal Bank Share Price Falls Despite Decadal Best Asset Quality and ₹1.20 Dividend

As of 11:55 AM on May 2, the share price of Federal Bank is trading 4.3% lower, marking the second consecutive day of decline. On the previous trading day, the stock had already dropped 3.31%. This dip comes despite the company delivering a decent financial performance for FY25.

Total Business Crosses ₹5 Lakh Crore Mark

Federal Bank’s total business crossed a significant milestone of ₹5.18 lakh crore in FY25, registering a year-on-year growth of 12.24%. The net advances rose by 12.15% to ₹2.35 lakh crore, with notable contributions from retail advances (up 14.5%) and commercial banking (up 26.76%).

Record Net Profit and Strong Other Income

The bank reported an annual net profit of ₹4,051.89 crore, an increase of 8.9% over FY24. For the March 2025 quarter alone, the net profit stood at ₹1,030.23 crore, up 13.67% year-on-year and 7.83% quarter-on-quarter. Other income surged 33.44% YoY to ₹1,005.95 crore, backed by a 30.11% increase in fee income.

Decadal Best Asset Quality

Federal Bank achieved its best asset quality in a decade with Gross NPA at 1.84% and Net NPA at 0.44%. The Provision Coverage Ratio improved to 75.37%, reinforcing the bank’s prudent risk management.

Operating Metrics and Margins

For Q4 FY25, the bank’s Net Interest Income (NII) rose 8.31% YoY to ₹2,377.44 crore, with Net Interest Margin (NIM) improving to 3.12%. Return on Assets (ROA) and Return on Equity (ROE) stood at 1.24% and 12.82%, respectively.

Deposit Growth and Capital Strength

Total deposits increased by 12.32% to ₹2.84 lakh crore. The bank’s capital adequacy ratio stood at 16.40% as per Basel III norms, with a Tier I ratio of 15.04%.

Read More: Adani Ports Share Price Rallies 5% After Strong Q4 Results. 

Dividend and Strategic Initiatives

The Board has recommended a 60% (₹1.2) dividend on equity shares of face value ₹2. FY25 also saw the launch of several strategic initiatives, including:

  • Project Udaan (branch transformation),

  • Corporate Internet Banking portal (FedOne),

  • Onboarding Bollywood actor Vidya Balan as the brand’s first ambassador,

  • Rollout of 150 strategic projects,

  • Opening of 85 new outlets, taking the total count to 1,589.

CEO’s Commentary

KVS Manian, MD & CEO, noted: “Crossing the ₹5 lakh crore total business and ₹4,000 crore net profit milestones marks a defining moment in our journey. We remain confident in sustaining our growth momentum through strategic focus and disciplined execution.”

Conclusion 

Despite robust financial performance and best-in-decade asset quality, Federal Bank’s stock has faced selling pressure. Investors may be reacting to broader market sentiment or booking profits post-results.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.