Anand Rathi has given Buy recommendation for Federal Bank with a target price of Rs. 150 in its research report issued on Oct 14, 2022

Anand Rathi’s research report on Federal Bank

Higher margins and fee income led to a 380bps sequential improvement in Federal Bank’s C/I ratio, which is now 48.9%. The strong operating performance and benign credit cost (53bps) led to the better RoA. Asset quality improved as slippages were less than 1%. With the lower formation of stress than earlier envisaged, recoveries in earnings would be better.


Given the bank’s strong liability franchise and capitalisation, it is set to gain market share in the near term. We maintain our positive view on it with a Rs150 target, valuing it at 1x P/ABV on its FY25e book.

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