the short version
the share is level with the NIFTY 500 in three months: it fell 6.0% and the index fell 6.2% (30 jul to 30 oct 2026). Muthoot Finance fell 19.9%, which puts it 14 points behind the index
two things could be behind it, though i can’t prove either: profit rose 63.1% in july to september 2026 against 36% at Muthoot, whose result came on 31 oct, and ₹45 out of every ₹100 it lends is against property and homes. Manappuram’s july to september result isn’t in my data yet; its april to june profit rose 341.40%
the worry: gold loans grew 77% while the gold grew 16%. on 30 sep 2026 Fedbank’s gold loans stood at ₹68 on every ₹100 of gold, up from ₹61.70 a year earlier
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Fedbank Financial Services share price: flat since december 2023
Fedbank Financial Services (NSE: FEDFINA) went from ₹142.55 on 1 dec 2023 to ₹143.65 on 30 oct 2026, up 0.8%. the NIFTY 500 rose 20.9% in that time. 1 dec is the first close in my price data. so nearly three years of nothing, while the business underneath changed a lot.
Fedbank vs the NIFTY 500: three numbers
Fedbank’s share fell with the market in a quarter when its profit jumped and its gold loans ran far ahead of its gold. level is a fresh thing, by the way. in the week from 23 to 30 oct the share fell 4.0% while the NIFTY 500 rose 2.2%.
gold loan stocks: Fedbank vs Muthoot Finance and Manappuram Finance
Fedbank fell 6.0% from 30 jul to 30 oct 2026, Muthoot Finance 19.9% and Manappuram Finance 21.5%. so Muthoot is 14 points behind the NIFTY 500 and Manappuram 15. i can’t give you one filed reason for that. Fedbank does have property loans to lean on, ₹45 of every ₹100. its 30 oct close was its lowest of these three months.
what Fedbank Financial Services does: gold loans and property loans
Fedbank is a lender, 60.64% owned by Federal Bank, and in one year gold became its biggest business. out of every ₹100 it had lent, gold went from ₹42 in sep 2025 to ₹54 in sep 2026. loans against property and homes went from ₹55 to ₹45. all its loans together grew 36.6% to ₹22,035 cr.
how a gold loan works, and how much Fedbank lends against your gold
a gold loan is about as simple as lending gets: Fedbank holds your chain, and when it lends it gives you about ₹72 on every ₹100 of gold on average. you pay the interest and take the gold home when you repay. across all its gold loans on 30 sep 2026 the figure stood at ₹68. when gold gets dearer, the same chain fetches a bigger loan.
Fedbank gold loans grew 77%, the gold in its lockers 16%
Fedbank’s gold loans grew 77% in a year, to ₹11,917 cr, and the gold behind them only 16% by weight. that’s 11.1 tons going to 12.9 tons. the rest of the growth came from each gram being worth more and from a higher loan-to-gold ratio. this gap is the story, and the worry.
why the average Fedbank gold loan got bigger, in its own words
Fedbank’s head of gold loans said it plainly: the bigger loans are about the price of gold. on the 28 apr 2026 call he added that if the price settles, so will the size of the average loan. fine while gold climbs. the book grows without one new customer walking in.
Fedbank Q2 results: profit up 63.1% to ₹130.8 cr
Fedbank’s profit after tax rose from ₹80.2 cr to ₹130.8 cr in july to september 2026, mostly because a much bigger loan book brought in more income. out of every ₹100 it earned after paying its own lenders, running costs took ₹52.50, down from ₹56.90. that’s with 74 new branches opened in the quarter.
Fedbank book value per share: ₹84.4, up 16%
Fedbank’s book value per share rose from ₹72.5 to ₹84.4 in the year to sep 2026, while the share slipped. for a lender, this is the measure to watch. the share went from 2.1 times book value on 30 sep 2025 to 1.7 times on 30 oct 2026. i’m only telling you what it did, not what it should do.
Fedbank bad loans: 1.8% of all loans at end september 2026
Fedbank’s bad loans were 1.8% at end september, and its boss says the gold part isn’t a lasting problem. bad loans are the ones that have stopped being paid on time. june’s 1.6% came after write-offs; the company said 1.87% without them. a year earlier it was 1.9%. Parvez Mulla, who runs Fedbank, tied the gold figure to new gold-lending rules.
Fedbank’s gold growth forecast went up, and it was called unchanged
in july Fedbank’s boss said nothing had changed, on the same call where his flat-gold forecast was higher than in april. april: gold loans “still should see a 20%, 22% growth” even with flat prices. july: “about 25% to 30%”. the number went up, which is the nice way for it to move. what bugs me is being told it didn’t move.
did Fedbank deliver on its promises: profit on track so far, growth open
Fedbank’s promises on profit are on track so far, and the one on growth is still open. return on assets is a year’s profit as a share of everything it owns. april’s promise was 0.2 to 0.3 points above 2.4%. in october Mulla recalled 0.3 to 0.4. the whole book needs 20 to 25% for the year and has done 9%.
the risk in Fedbank’s gold loans: a thinner cushion
on 30 sep 2026 Fedbank’s gold loans stood at 68% of the gold’s value, up from 61.7% a year earlier. from march to september the gold book grew 15.1% while the gold went from 12.6 to 12.9 tons. the company blames gold falling in april to june, says new loans stayed at similar levels, and calls 68% well within the rules.
what to check in Fedbank’s october to december 2026 results and after
four numbers will tell me if Fedbank’s growth is its own, starting with gold by weight. i’d change my mind if the gold pledged grows under 10% by weight for two quarters in a row while bad-loan costs climb above 1% of its assets. they were 0.6% in july to september. that test needs the next results too.
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