Prabhudas Lilladher Recommends 'BUY' on Federal Bank, Raises Target to Rs 275
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Moneycontrol•19-01-2026, 15:15
Prabhudas Lilladher Recommends 'BUY' on Federal Bank, Raises Target to Rs 275
- •Federal Bank reported a strong quarter with a 4.2% beat on Net Interest Income (NII).
- •Net Interest Margin (NIM) increased by 12 bps QoQ to a 7-quarter high of 3.18%, despite a repo rate cut.
- •NIM growth was organic, driven by reduced high-cost liabilities, improved investment yield, and CRR cut.
- •Prabhudas Lilladher raised NIM estimates for FY27/28E by 5 bps each due to positive surprises and balance sheet mix.
- •Target Price (TP) increased to Rs 275 from Rs 250, retaining a 'BUY' rating on Federal Bank.
Why It Matters: Prabhudas Lilladher recommends buying Federal Bank, citing strong Q3 performance and raising target to Rs 275.
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