Moneycontrol
Last Updated : Sep 20, 2018 04:43 PM IST | Source: Moneycontrol.com

Hold Federal Bank; target of Rs 84: Sharekhan

Sharekhan recommended hold rating on Federal Bank with a target price of Rs 84 in its research report dated September 18, 2018.

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Sharekhan's research report on Federal Bank


Federal Bank has 32% of its advances and has 48% of its branches situated in Kerala. Management expects bad loans from Kerala to go up by 20-30% due to the recent floods in the region. However, players such as Federal Bank may see an uptick in deposit flows as relief aid money pours in for relief and rehabilitation. Due to the recent Kerala floods, we believe the next 1-2 quarters may see a likely rise in NPAs for the bank.


Outlook


We downgrade our recommendation on Federal Bank to Hold with a revised PT of Rs.84.


For all recommendations report, click here



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First Published on Sep 20, 2018 04:43 pm
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