Views on Federal Bank Ltd 1QFY2018 Results: Angel Broking

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

"Core Operations of Federal Bank remained strong with a loan growth of 29% and deposits growth of 18%. Deposits on a sequential basis however declined by 1.9%, the asset quality of the bank witnessed some stress during the quarter as one large corporate lender slipped into NPAs, resulting in marginal rise in GNPAs to 2.42% vs 2.33% QoQ. However, we remain positive on the asset quality of the bank in the near future and don't see major deterioration in it. With the recently raised capital the CAR of the bank remains strong at 15.3%, which will enable maintaining the growth momentum going ahead. At the CMP the stock trades at 1.7x its FY19E ABV and we have an ACCUMULATE rating on the stock."

Shares of FEDERAL BANK LTD. was last trading in BSE at Rs.114.8 as compared to the previous close of Rs. 119.05. The total number of shares traded during the day was 6810038 in over 16315 trades.

The stock hit an intraday high of Rs. 121.45 and intraday low of 112. The net turnover during the day was Rs. 781141559.

Source : Equity Bulls

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