New Delhi, Aug. 6 -- Federal Bank shares haven't fared too well so far this year, yet some analysts are optimistic that it is poised for a re-rating as its transformation strategy kicks in over the next few years.

biggest laggard on the Nifty Bank index, down almost 2% and trailing only IndusInd Bank, which plunged about 17% in 2025. Federal Bank shares lag far behind the Nifty Bank index, which has delivered returns of 9.3% to investors.

Even so, analysts said Federal Bank might just be a re-rating story in the making, one that could deliver stronger returns than most of its peers.

"Federal is the safest midsized bank with potential to deliver strong growth," Nuvama Institutional Equities said in a report dated 2 August, maintaining i...