Robust numbers from Federal Bank, poised for further re-rating: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking):

"Federal Bank has come out with a strong set of results for the quarter. Business growth remained robust with loan and deposits growing by 26% and 23% respectively. Asset quality has seen a remarkable improvement during the quarter, with GNPAs going down by 12% QoQ and GNPAs ratio improved to 2.33% vs 2.77% QoQ. Slippages during the quarter at INR 244 cr were also lower compared to INR 274 cr in Q3FY17. On the back of lower slippages the provisioning was also lower by 23% QOQ and this propelled a PAT growth of 25% sequentially. With improving outlook we believe Federal Bank has potential for further re-rating. We have a BUY rating on the stock."

Shares of FEDERAL BANK LTD. was last trading in BSE at Rs.116 as compared to the previous close of Rs. 117.05. The total number of shares traded during the day was 1001875 in over 3428 trades.

The stock hit an intraday high of Rs. 118.25 and intraday low of 115.45. The net turnover during the day was Rs. 116597988.

Source : Equity Bulls

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