Motilal Oswal reiterates ‘buy' rating on Federal Bank, here's why

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Motilal Oswal reiterates a ‘buy' rating on Federal Bank with a target price of Rs 110. While reappointment of the CEO Shyam Srinivasan removes the key overhang, the firm believes that the rerating will largely happen on the improvement of return ratio.

Motilal Oswal reiterates a ‘buy' rating on Federal Bank with a target price of Rs 110. While re-appointment of the CEO removes the key overhang, the firm believes that the rerating will largely happen on the improvement of return ratio.
So, for the last six years, the average RoE on Federal Bank has been around 9 percent but that is going to change now, according to the brokerage house. It is estimated to improve to 14 percent by FY23 and hence Federal Bank remains its top pick in the banking space.
Watch the accompanying video of CNBC-TV18's Nimesh Shah for more details.
To watch other videos in this series, click on the Standout Brokerage Report tab below.

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