Buy Federal Bank, says Vaibhav Agrawal

Buy Federal Bank at this point, says Vaibhav Agrawal, VP-Research Banking at Angel Broking.

Agrawal told CNBc-TV18, "We track Yes Bank, Federal Bank and South Indian Bank. Federal Bank gave a negative surprise on asset quality but the management explained there were certain one time employee related issues and they are implementing quite a lot on risk management and performance incentives going forward, so we would expect improvement in performance from these levels, so we have a buy on Federal Bank at this point."

He further added, "Yes Bank was another bank which gave another quarter of good earnings although there are macro headwinds, so we have an accumulate on that stock but if the macro starts clearing up then that would be one very interesting stock to look out for."