InvestorQ : I was impressed by the Federal Bank results in the fourth quarter. Can I look to buy the stock at current prices?
Riya Dwivedi made post

I was impressed by the Federal Bank results in the fourth quarter. Can I look to buy the stock at current prices?

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rhea Babu answered.
1 year ago
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How the results of Federal Bank panned out?

Federal Bank reported a 163% jump in profits for the fourth quarter ended March 2019 and this was largely helped by lower provisioning for bad loans and higher interest income. While the total income for the quarter was up by 20% at Rs.3444 crore, the provisions for bad loans in the quarter fell more than half to Rs.177 crore. These two factors combined to give a boost to the profitability of Federal Bank.

Should you look to buy or hold Federal Bank at current prices?

Unlike a lot of other private sector banks, Federal Bank has not been a great outperformer over time. If you are looking at the private banking space then there are choices like RBL Bank which bring aggressive growth and good asset quality management to the table. However, Federal Bank appears to be finally getting its fairly large SME portfolio under control and that could be the good news. Quite a few times in the past, Federal Bank has also been spoken about as an acquisition target. A lot could depend on that!
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