Buy Federal Bank; target of Rs 120: Sharekhan

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26 Aug, 2025 12:21

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Sharekhan's research report on Federal Bank

Federal Bank (FEDBK)  has  posted  weak  Q4FY2018  results, where high slippages  (primarily due to  RBI’s revised  norms)  eclipsed other performance parameters. FEDBK saw its net interest income (NII) increasing by 10.8% y-o-y to Rs. 933.2 crore. Non-interest  income  (OI)  increased  by  11.4%  y-o-y to Rs. 314 crore, wherein fee income growth stood  at  12.3%  y-o-y.  High  slippages  impacted net  interest  income,  thus  affecting  net  interest margins  (NIM).

Outlook

We  believe  H2FY2019E  should  see stability in asset-quality performance, which will be positive for return ratios as well. We maintain our Buy rating with unchanged price target of Rs. 120.For all recommendations report, click here

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