Sharekhan's research report on Federal Bank
Federal Bank aspires to be a universal lender with a nationwide franchise and among the top 5 private sector banks over the next 3-5 years. It is eyeing an improvement in the return ratios (RoA/RoE) that is closer to top 3 private banks. Rise in RoA would be led by improvement in NIMs driven by better liability mix, alongside efforts to improve loan yields through mix and pricing and higher fee income contribution. The bank has set an ambitious goal but execution remains key.
Outlook
We remain assertive on the franchise from medium to long term thus maintain a Buy rating on the stock with an unchanged PT of Rs. 220. At CMP, the stock trades at 1.2x / 1.1x its FY2026E/ FY2027E BV estimates.
For all recommendations report, 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
