India's Federal Bank gains after CLSA starts with 'outperform'

Federal Bank

04/04/2025 09:57

** Shares of Federal Bank FED.NS rise 1.45% to 196.95 rupees apiece

** Rise after CLSA initiates coverage with "outperform" rating on the private sector bank, citing inexpensive valuations and steady deposits

** CLSA sets a target price of 230 rupees on FED, implying an 18% upside in the next 12 months

** FED's strong non-resident deposit base, which contributes to 30% of total deposits, and its potential to scale up current account deposits should help improve the lender's net interest margins, says CLSA

** Average rating of 29 analysts tracking FED is "buy" - data compiled by LSEG

** Shares down 3% in 2025 so far, underperforming bank index .NSEBANK which is up 1.4%

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))