'Buy' Federal Bank To Get An Upside Of 19%, Says IDBI Capital — Here's Why

The top three priorities of Federal Bank will be to grow the CASA deposits, fee income to boost NIM expansion. While there could be short term pressure on the margins due to rate cut, the bank believes the medium term story for the bank remains positive..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .IDBI Capital Report.We attended the analyst day hosted by Federal Bank Ltd. where the newly appointed MD and CEO K.V.S. Manian and the top management shared the medium term strategies for the bank. The top three priorities of the bank will be to grow the CASA deposits, fee income to boost NIM expansion. While there could be short term pressure on the margins due to rate cut, the bank believes the medium term story for the bank remains positive. By diversifying its product line and breaking into new financial product categories like asset management, capital markets, investment banking, etc., the bank hopes to become a "Universal Bank." The management maintained its guidance of growing 1.5x the GDP growth rate of the country. We expect deposit to grow at 14% CAGR and credit growth to be 15% CAGR (FY25-27). We maintain our estimates and a Buy rating on the stock with a target price of Rs 215 based on 1.3 times P/ABV FY27. .Click on the attachment to read the full report:.'Buy' HDFC Bank Shares To Get An Upside Of 22% Says Motilal Oswal —Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Federal Bank To Get An Upside Of 19%, Says IDBI Capital — Here's Why

The management maintained its guidance of growing 1.5x the GDP growth rate of the country, adds IDBI Capital

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