Rekha Jhunjhunwala stock: Time to buy Federal Bank post ₹686-cr tax refund?

Federal Bank has informed that it will receive a tax refund of ₹686-crore in a long-standing tax matter

Federal Bank share price today: Ace investor Rekha Jhunjhunwala-backed Federal Bank shares today jumped 1.5 per cent in trade after the private lender said that it will receive ₹686 crore in a tax refund.

Federal Bank shares opened marginally higher at ₹289.55 on the National Stock Exchange (NSE) and went on to make a high of ₹292.50. Around 11AM, shares of the private lender held firmly in the green to quote 1.1 per cent higher at ₹291.45 with 1.9 million equities changing hands.

The counter is less than 3 per cent away from its 52-week high of ₹298.25, touched on February 3, 2026.

₹686 crore tax refund

In an exchange filing, Federal Bank informed that it has received orders from the Income Tax Department, Kochi, in a long-standing tax matter. The tax refund pertains to assessment years 2012–13 and 2013–14.

"As per the orders referred above, the aggregate amount refundable to the Bank for the AY 2011-12, AY 2012-13 and AY 2013-14 including interest u/s 244A of the Income-tax Act is ₹686,31,48,368," the Kerala headquartered bank said in the filing. 

Analyst bullish on Federal Bank

Nilesh Jain, Head Derivatives and Technical Research at Centrum Broking, said that Federal Bank appears strong in the current setup, with momentum indicators signaling continued buying interest.

"The overall outlook remains positive, suggesting a potential upside toward the ₹300–310 range in the near term. Immediate support is placed at ₹283," the analyst said. 

 

Rekha Jhunjhunwala stake

At the end of third quarter (Q3FY26), Rekha Jhunjhunwala owned 59,030,060 shares, representing 2.42 per cent stake in the lender. The total value of her investment in the lender was more than at ₹1,700 crore, as per today's price.

Federal Bank shares have outperformed the markets significantly over the last few years. As per exchange data, the counter has delivered a return of 58 per cent in the last one year as against 9.4 per cent rise in the BSE Sensex and 22 per cent rally in BSE Bankex. It has zoomed 90 per cent in two years and more than doubled investors money in three years by climbing 130 per cent.

Q3 results

In the third quarter (Q3FY26), Federal Bank had reported a 9 per cent Y-o-Y jump in net profit to ₹1,041 crore. The profit was mainly driven by 20 per cent surge in non-interest income which stood at ₹1,100 crore. The lender's net interest income grew by 9 per cent to ₹2,653 crore.  On the asset quality front, the bank's gross non-performing assets ratio improved to 1.72 per cent, as against 1.95 per cent a year ago.

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