Bank stocks have been on the rise since October. While Federal Bank, with 28 per cent gains the past three months, has participated in the re-rating journey, when compared to stocks such as IndusInd Bank or RBL Bank, the gains seem muted.
Understandably, the Street may be worried that over 38 per cent of the bank’s exposure is to corporate loans and 19 per cent to small and medium enterprise (SME) loans. Further the fact that the asset quality in the past two quarters may have been camouflaged by the moratorium, the bank providing only Rs 590 crore towards likely Covid-19 induced ...
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