Hem Securities has given Buy recommendation for Federal Bank with a target price of Rs. 98 in its research report issued on May 30, 2022

Hem Securities report on Federal Bank

Federal Bank advances increased by 3% QoQ / 10% YoY to Rs 1,476 billion, owing to strong growth in Agri and SME loans. The bank’s asset quality improved, with GNPA falling to 2.8 percent from 3.06 percent in the previous quarter, thanks to stronger recoveries and upgrades. Stressed book percent of assets fell to 2.36 percent from 2.61 percent in the previous quarter.

Outlook

We value the company at 8.99x FY23 EPS to arrive at the target of 98.

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