Money & Banking

Federal Bank plunges on weak Q2, higher bad loans

Reuters | Updated on January 23, 2018 Published on October 21, 2015

Federal Bank

Federal Bank shares fell as much as 14.8 per cent after the lender reported that July-Sept net profit fell by a third.

Gross bad loan ratio rose to 2.90 per cent from 2.59 per cent q-o-q, the filing said.

Citi retains "buy" on the stock, but cuts target price to Rs 75 from Rs 90 citing asset quality crunch and question marks on the bank's restructuring and positioning.

"We believe there is still some value and opportunity for its revamp, but the upside both in business and the stock will call for patience," Citi says in a note

Barclays retains "equal weight" and has reduced target to Rs 64 from Rs 70.

Goldman Sachs also remains "neutral"; cuts target by 4.9 per cent to Rs 78.

Published on October 21, 2015
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