Federal Bank has bolstered its capital position and made it ready to win market share post the pandemic
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
The sharp spike in Federal Bank’s (CMP: Rs 104, Market Cap: Rs 21,835 crore) share price post its earnings is a clear indication that the Street is convinced that the worst may be behind — something we had been suggesting for a while. The asset quality picture was comforting, and, with businesses limping back to normal, the bank looks set to pursue growth with adequate capital in its pocket. While pension cost remains a sticky issue, we expect a…
