Federal Bank is expected to see a strong rise, with global brokerage firm Nomura predicting its stock could jump by 24% to reach ₹240. Nomura has given the stock a ‘buy’ rating, citing that the bank is transitioning from a value stock to a quality one.
Recently, KVS Manian, the former Joint MD of Kotak Mahindra Bank, took over as Federal Bank’s new MD & CEO. Nomura believes that Manian’s experience in building successful, low-risk, high-return businesses will help improve Federal Bank’s performance even further. They also see the bank’s strong deposit base and solid asset quality as undervalued at the current price.
Nomura says that Federal Bank has consistently outperformed its peers in terms of deposit growth and asset quality, and they see it as the best mid-sized bank to excel in these areas. Over the past year, the bank’s stock has risen by 33%, with a 25% gain in 2024 alone.
As of today, Federal Bank’s stock was trading 1.2% higher at ₹195.80.
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