Federal Bank shares in focus as ICICI Pru AMC gets RBI nod to buy up to 9.95% stake
Federal Bank share price: Shareholding data for December quarter showed that 38 mutual funds owned 93,02,35,398 shares or 38.16 per cent stake in Federal Bank as of December 31, 2025.
- Feb 12, 2026,
- Updated Feb 12, 2026 8:30 AM IST
Shares of Federal Bank Ltd are in focus on Thursday after the RBI gave its approval to ICICI Prudential Asset Management Company Limited, along with group entities of ICICI Bank Ltd, for acquiring an aggregate holding of up to 9.95 per cent of the paid up share capital or voting rights of the bank, subject to the conditions specified therein.
In a filing to stock exchanges, Federal bank said: "The aforesaid approval granted by RBI is subject to compliance with the relevant provisions of the Banking Regulation Act, 1949, Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other statutes, regulations and guidelines, as applicable."
The Reserve Bank of India recently approved Blackstone arm Asia II Topco XIII Pte to acquire an aggregate holding of up to 9.99 per cent of the bank’s paid-up share capital or voting rights. A similar approval was granted to SBI Mutual Fund on January 31, 2026.
Shareholding data for December quarter showed that 38 mutual funds owned 93,02,35,398 shares or 38.16 per cent stake in Federal Bank as of December 31, 2025. This included HDFC Mutual Fund's 6.79 per cent stake. Axis Mutual Fund held 3.52 per cent stake in the bank.
ICICI Prudential Asset Management Company (AMC) or any ICICI entity was not among shareholders with over 1 per cent stake in the bank.
Federal Bank recently reported an 8.98 per cent YoY rise in net profit at Rs 1,041.21 crore for the December quarter. Its NII rose 9.11 per cent YoY to Rs 2,652.73 crore. Net interest margin (NIM) for the quarter came in at 3.18 per cent. Fee income at Rs 896.47 crore was up 18.57 per cent YoY. Asset quality improved, with gross non-performing assets coming in at 1.72 per cent, down 11 basis points QoQ or 23 basis points YoY.
"We appreciate the bank’s strong execution and acknowledge likely tailwinds on RoA from NIM expansion. That said, we model FY27E loan growth (14 per cent YoY) to be slower than management guidance (16 per cent) due to NIM growth trade-off," ICICI Securities said last month.
BNP Paribas on January 16 took note of the practical discontinuation of unsecured business loans, investment in gold loans distribution and tech capacity build in small-ticket LAP loans as clear positives. The market, seems to have taken cognisance of these and the stock has rallied 58 per cent in the last 12 months. BNP Paribas has maintain 'Neutral' on the stock.
Rekha Jhunjhunwala held 5,90,30,060 shares or 2.42 per cent stake in Federal Bank at the end of December quarter. Zerodha Broking, on the other hand, owned 1.02 per cent stake in the private lender at the end of December 2025.
Shares of Federal Bank Ltd are in focus on Thursday after the RBI gave its approval to ICICI Prudential Asset Management Company Limited, along with group entities of ICICI Bank Ltd, for acquiring an aggregate holding of up to 9.95 per cent of the paid up share capital or voting rights of the bank, subject to the conditions specified therein.
In a filing to stock exchanges, Federal bank said: "The aforesaid approval granted by RBI is subject to compliance with the relevant provisions of the Banking Regulation Act, 1949, Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other statutes, regulations and guidelines, as applicable."
The Reserve Bank of India recently approved Blackstone arm Asia II Topco XIII Pte to acquire an aggregate holding of up to 9.99 per cent of the bank’s paid-up share capital or voting rights. A similar approval was granted to SBI Mutual Fund on January 31, 2026.
Shareholding data for December quarter showed that 38 mutual funds owned 93,02,35,398 shares or 38.16 per cent stake in Federal Bank as of December 31, 2025. This included HDFC Mutual Fund's 6.79 per cent stake. Axis Mutual Fund held 3.52 per cent stake in the bank.
ICICI Prudential Asset Management Company (AMC) or any ICICI entity was not among shareholders with over 1 per cent stake in the bank.
Federal Bank recently reported an 8.98 per cent YoY rise in net profit at Rs 1,041.21 crore for the December quarter. Its NII rose 9.11 per cent YoY to Rs 2,652.73 crore. Net interest margin (NIM) for the quarter came in at 3.18 per cent. Fee income at Rs 896.47 crore was up 18.57 per cent YoY. Asset quality improved, with gross non-performing assets coming in at 1.72 per cent, down 11 basis points QoQ or 23 basis points YoY.
"We appreciate the bank’s strong execution and acknowledge likely tailwinds on RoA from NIM expansion. That said, we model FY27E loan growth (14 per cent YoY) to be slower than management guidance (16 per cent) due to NIM growth trade-off," ICICI Securities said last month.
BNP Paribas on January 16 took note of the practical discontinuation of unsecured business loans, investment in gold loans distribution and tech capacity build in small-ticket LAP loans as clear positives. The market, seems to have taken cognisance of these and the stock has rallied 58 per cent in the last 12 months. BNP Paribas has maintain 'Neutral' on the stock.
Rekha Jhunjhunwala held 5,90,30,060 shares or 2.42 per cent stake in Federal Bank at the end of December quarter. Zerodha Broking, on the other hand, owned 1.02 per cent stake in the private lender at the end of December 2025.