Federal Bank Limited

“Federal Bank is a well-governed, clean Indian private sector bank with a structural NRI remittance franchise and improving but sub-par ROE — a tier-2 franchise priced at fair value near its 52-week high, offering only market-rate returns over a 10-year horizon with no meaningful margin of safety and a narrow moat under incremental digital pressure. It does not meet the bar for long-term compounding capital.”