Federal Bank Shares Fall: What’s Next?
Federal Bank's shares fell by 5% to ₹185 due to a drop in quarterly profit, impacted by higher provisions and bad loans. Despite this, brokerages like Nuvama and CLSA are optimistic, maintaining "buy" ratings with a target of ₹230, citing expected improvements in credit costs. The bank's management noted that stress in the microfinance sector peaked in May but is now easing. Although net profit dropped 14.6% to ₹861.8 crore, asset quality showed signs of improvement, making the outlook cautiously optimistic for investors.
