Sharekhan is bullish on Federal Bank has recommended buy rating on the stock with a target price of Rs 120 in its research report dated May 09, 2018.
Sharekhan's research report on Federal Bank
Federal Bank (FEDBK) has posted weak Q4FY2018 results, where high slippages (primarily due to RBI’s revised norms) eclipsed other performance parameters. FEDBK saw its net interest income (NII) increasing by 10.8% y-o-y to Rs. 933.2 crore. Non-interest income (OI) increased by 11.4% y-o-y to Rs. 314 crore, wherein fee income growth stood at 12.3% y-o-y. High slippages impacted net interest income, thus affecting net interest margins (NIM).
Outlook
We believe H2FY2019E should see stability in asset-quality performance, which will be positive for return ratios as well. We maintain our Buy rating with unchanged price target of Rs. 120.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.