Share price of Jana Small Finance Bank slumped 14% to ₹424.30 on the BSE in Monday's intraday deals amid reports that Federal Bank was not in active talks for a stake buy.
The private sector lender reported a 26.4% rise in net interest income, a 26-basis-point expansion in margins and improved asset quality, with gross advances crossing Rs 3 trillion
Federal Bank reported a 45% rise in Q2 FY27 net profit to ₹1,386 crore, aided by $1.5 billion raised through FCNR(B) deposits, while net interest income grew 26% to ₹3,153 crore
Analysts at Kotak Institutional Equities believe the rate hike cycle poses limited risk for banks, given healthy balance sheets, tighter underwriting standards and stronger borrower fundamentals.
At 10:31 AM on Wednesday, the Nifty Bank, Nifty Private Bank, Nifty PSU Bank and Nifty Financial Services traded up to 1% higher; while, the Nifty Auto and Nifty Realty remained in negative zone.
Federal Bank shares fell 4 per cent after it issued a clarification on reports that it may acquire a controlling stake in Jana Small Finance Bank.
On the broader market outlook, Ajit Mishra, SVP-Research of Religare Broking says the Nifty remains in consolidation mode, with key support at 23,600. On the upside, bullish pivot stands at 24,600.
Virat Jagad of Bonanza provides a technical analysis on 5 stocks from Rekha Jhunjhunwala's portfolio: Titan, Federal Bank Karur Vysya Bank, Metro Brands and Indian Hotels. Here's what the analyst says
Banks booked modest treasury gains in Q1FY27 despite softer bond yields as they pared excess SLR holdings and sold government securities to support credit growth
NII rose 26 per cent YoY to Rs 2,946 crore, supported by healthy growth in advances and an expansion in margins. Sequentially, NII declined 7 per cent
Federal Bank posted a strong growth in profitability and core earnings, driving investor interest in the counter.
Stocks to watch today: TCS, Maruti Suzuki, JSW Steel, JK Tyre, Federal Bank, AU SFB, SAIL, Nalco, NLC India, Anand Rathi Wealth, JSW Steel, Cummins India, among others, will be in focus today
S&P Global Ratings assigned the private sector lender a BBB-/Stable long-term issuer credit rating, recognising its franchise strength, capitalisation and financial resilience
Healthy credit growth and treasury gains are expected to lift banks' Q1FY27 profits, while asset quality remains stable despite concerns over the West Asia conflict
At 11:26 AM on the Tuesday, the Nifty Bank and Nifty Private Bank index (up 1 per cent each) and Nifty PSU Bank index up 2 per cent outperformed the Nifty 50, which was down 0.03 per cent.
Analysts at Axis Securities project up to 16% upside in Federal Bank, Zen Technologies and Chennai Petroleum owing to breakout witnessed on the weekly charts.
Stocks to buy today: Ajit Mishra of Religare Broking has recommended buying three stocks today - Apollo Hospitals, Federal Bank, and Varun Beverages.
The Reserve Bank of India has approved the appointment of former IAS officer Elias George as Federal Bank's part-time chairman for three years
India's weightage in the MSCI Standard Index remained broadly unchanged at 12.3 per cent, versus 12.4 per cent earlier
Death Cross alert: Technical analyst at Choice Broking expects Nifty Auto and Bank Nifty to underperform in the near-term as shorter-term moving average has slipped below the long-term 200-DMA.