Moneycontrol
Apr 19, 2017 12:28 PM IST | Source: Moneycontrol.com

Buy Federal Bank; target of Rs 110: ICICI Direct

ICICI Direct is bullish on Federal Bank has recommended buy rating on the stock with a target price of Rs 110 in its research report dated April 13, 2017.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's report on Federal Bank


Federal Bank looks well poised for a healthy earnings trajectory, going ahead. This is on account of its superior fundamentals given its relative strength with CASA deposit at 34.7%, ability to generate higher NIMs of 3.2-3.3% and a healthy capital base (Tier at 12%).


Outlook


Slippages, which ranged at Rs 300-500 crore in each quarter of FY16, reduced to below Rs 300 crore in the past three quarters of FY17E. We expect the GNPA ratio at 2.3% by FY19E from current ratio of 2.77%. We revise our TP higher to Rs 110 as we roll over to FY19E.


For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Sections
Follow us on
Available On