Brokerage houses have kept target price in between Rs 140-Rs 160 on Federal Bank after the lender reported 42 percent year-on-year (YoY) rise in net profit at Rs 854 crore for first quarter of FY24. On Friday, the shares of the bank were trading higher. On the Bombay Stock Exchange (BSE), the stocks rose by 1.18 percent to intraday high of Rs 129.80.

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Here's a look at how different brokerage houses are seeing Federal Bank's numbers:

Citi

Citi upgraded its rating on Federal Bank to 'buy' with a target of Rs 160 per share. It said that advances growth is broad-based and wholesale deposits inched up further. It added that net interest margin (NIM) disappointed, while the growth/fees were comforting and credit cost contained.

Notably, the NIM of the lender advanced by 19.6 percent to Rs 1,918 crore as against Rs 1,604.5 crore in first quarter of FY23.

Morgan Stanley

Morgan Stanley maintained an 'equal weight' rating on Federal Bank with a target of Rs 145 per share. It said that the NIM is near trough, but recovery will be gradual.

Investec

Investec maintained 'hold' rating on Federal Bank with a target of Rs 140 per share. It said it is expecting investments made in franchise to yield results gradually. It added that NIM may improve from second quarter as pace of CoF repricing moderates, while estimating it to be in the range of 3.15-3.25 percent.

UBS

UBS maintained a 'neutral' rating on Federal Bank with a target of Rs 155 per share. It said that loan growth is healthy across segments.

A look at Federal Bank's numbers

For the lender, the gross non-performing asset (NPA) was reported at Rs 4,434.8 crore as against Rs 4,183.8 crore in fourth quarter of FY23.In percentage term, it was 2.38 percent up. The net NPA for first quarter of FY24 stood at Rs 1,274.6 crore versus Rs 1,205 crore in Q4 of FY23. In percentage term, this was 0.69 percent up.

The lender posted treasury consolidated revenue at Rs 764.33 crore. Its corporate/wholesale banking division recorded a revenue of Rs 1636.30 crore. Its retail banking vertical posted revenue at Rs 3645.58 crore while digital banking revenue was at Rs 303.40 crore, and other retail banking operations clocked revenue of Rs 3342.18 crore.

Earlier this month, Federal Bank reported its business update, revealing total deposits of Rs 2,22,513 crore, with a growth of 21.4 percent over Rs 1,83,355 crore as of June 30, 2022. The bank’s customer deposits (total deposits excluding interbank deposits and certificates of deposit) aggregated to Rs 2,10,439 crore, a growth of 17.2 percent over Rs 1,79,586 crore as of June 30, 2022.