Federal Bank good investment idea: Kunj Bansal

Kunj Bansal of Centrum Wealth Management told CNBC-TV18, "With every correction in the market a lot of attractive investment opportunities arise and also talking about banking index just now. A stock from that space comes to mind which is Federal Bank. So, it is now currently trading at around Rs 150-155 range. Reasonably decent market cap of Rs 14,000-15,000 crore and with reasonably decent liquidity also. For quite a few months the stock has been stuck in a very narrow price range and not moving at all."

"If we look at its numbers and valuations, the bank has a net non-performing assets (NPA) consistently of less than one percent and so is likely to be the case going forward. At the same time its return on assets being closer to 1.3-1.4 and even now after last one or two days little bit rise available at 1.4 times price to book makes a very good investment case for medium to short term investors. If market continues to remain positive in the next week then even short term investors should be able to make money," he said.