Federal Bank stock gains 20%: Asset quality in Q1 surprises street

Expect further improvement in loan growth

The Federal Bank stock gained 20 per cent on Tuesday, after the bank surprised with a good set of numbers in its June quarter (Q1) results, thereby covering nearly half the decline from its May high of  Rs 101. Though some of the surge in share price was due to the correction in the past two months, analysts believe there are more gains ahead, given the better-than expected results and reasonable valuation. 

“At the current valuation, the stock seems to have factored in major negatives and we expect positive sentiments to stay. Valuations also appear reasonable,” says Kajal Gandhi, analyst at