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Buy Federal Bank; target of Rs 95: Sharekhan

Sharekhan is bullish on Federal Bank has recommended buy rating on the stock with a target price of Rs 95 in its research report dated January 20, 2021.

February 01, 2021 / 06:39 PM IST
 
 
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Sharekhan's research report on Federal Bank


Q3FY21 numbers were encouraging, with healthy operational numbers (helped by sequentially lower provisions) and steady asset quality. GNPA/NNPA fell to 2.71% / 0.6% (from 2.84%/0.99% in Q2FY21), with negligible slippages (due to the SC order). Including proforma slippages, GNPA and NNPA ratios would have been at 3.38% and 1.14%, respectively. We believe that the bank is better placed in terms of book quality, with a 95% collection efficiency and as ~76% of wholesale borrowers are rated ‘A & above’. Credit cost outlook appear to be manageable.


Outlook


We maintain a Buy on the stock with a revised price target (PT) of Rs. 95.


For all recommendations report, click here


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first published: Feb 1, 2021 06:39 pm

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