Federal Bank has received an upgraded target price from global investment bank UBS, which has raised its price target to ₹310 from the previous level of ₹250 while maintaining a buy rating on the stock.

Target Price Revision Details

The revised target price represents a significant 24% increase from UBS's earlier projection, indicating a more optimistic outlook for the banking stock. UBS's decision to maintain its buy recommendation alongside the higher target suggests continued confidence in Federal Bank's business fundamentals and growth trajectory.

Investment Outlook

UBS's decision to raise the target price while maintaining its buy rating reflects a positive assessment of Federal Bank's prospects. The substantial upward revision in the price target indicates that the analysts may have identified improved business fundamentals, better earnings potential, or favorable market conditions that support a higher valuation for the banking stock.

The buy rating continuation suggests that UBS believes Federal Bank shares offer attractive investment potential at current market levels, with the new target price of ₹310.00 serving as the analyst's assessment of fair value based on their evaluation criteria.

In conclusion, UBS maintains its buy rating on Federal Bank, reflecting a positive outlook on the banking stock. The significant increase in the target price from ₹250.00 to ₹310.00 underscores the investment bank's confidence in Federal Bank's future performance and potential for growth.

Federal Bank held its Extra-Ordinary General Meeting (EGM) on November 19, 2025, where shareholders approved six key resolutions, including the issuance of warrants to Asia II Topco XIII Pte. Ltd. and revisions to executive compensation packages.

Warrant Issuance and Special Rights

Shareholders gave their approval for the issuance of warrants to Asia II Topco XIII Pte. Ltd., exercisable into equity shares through a preferential issue on a private placement basis. Additionally, they approved special rights granted to the entity in accordance with SEBI regulations.

Executive Compensation Revisions

The meeting saw the approval of revised remuneration packages for key executives:

1. Mr. Krishnan Venkat Subramanian (DIN: 00031794), Managing Director & CEO
2. Mr. Harsh Dugar (DIN: 00832748), Executive Director

Both executives will see changes in their compensation structure effective July 1, 2025.

Variable Pay and Stock Options

Shareholders also approved the payment of variable pay components and the grant of stock options to both Mr. Subramanian and Mr. Dugar.

Voting Results

The resolutions were passed with significant shareholder support:

Meeting Details

The EGM was conducted through video conferencing and was chaired by Mr. A P Hota, Independent Director and Chairman of the Bank. The meeting saw participation from 75 shareholders, with 5 raising queries or providing comments during the proceedings.

These approvals signal Federal Bank's strategic moves in capital raising and talent retention, potentially positioning the bank for future growth and competitiveness in the banking sector.