Federal Bank Ltd. share price target

Federal Bank Ltd, is an Indian commercial bank in the private sector headquartered in Kerala having 1,274 branches and 1,882 ATM/ Recyclers with a loan book size of Rs1,40,743cr....

We maintain a BUY rating on the stock with a target price of Rs 125 (1.3x FY23EABV).

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Federal Bank Ltd, is an Indian commercial bank in the private sector headquartered in Kerala having 1,272 branches and 1,874 ATM/ Recyclers with a loan book size of Rs1,37,313cr....

We maintain a BUY rating on the stock with a revised target price of Rs 125 (1.3x FY23E ABV).

Federal Bank reported rise in Covid specific restructured assets to 2.5% vs 1.8% QoQ led by retail loans (specifically home loans). However asset quality improved as GNPA stood at 3.24% vs 3.5% QoQ led by higher recoveries and upgrades (Rs.4.2bn) as compared to slippages (Rs.3bn). Stressed book % of assets which was declining for last 3 years spiked to 2.62% vs 2.24% QoQ. Credit growth improved to 10% YoY vs 7% YoY (Q1FY22); Deposits growth stood at 10% YoY vs 9% YoY (Q2FY22). NII grew by 4% QoQ led by improvement in NIMs. Operating profit declined by 24% QOQ due to change in accounting treatment for recovery in written off accounts. Provisions declined by 62%...

Federal Bank reported 2QFY22 earnings in line with our expectations and the key pointers are a) timely capital infusion, b) lower slippages led to significant reduction in GNPA, c) business growth on track, d) lower provision expenses because of lower loan loss write-backs and e) The...

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