Big Bull Rakesh Jhunjhunwala has raised his shareholding in Federal Bank by around 0.40 per cent in the second quarter (Q2) of the current financial year (FY 22). During April to June 2021 quarter, he added 75 lakh Federal Bank shares to his portfolio. For the last six months, the bank’s share has remained range-bound in the Rs 70 to Rs 90 range and failed to give quality return to its shareholders. This did not make any change to Jhunjhunwala’s shareholding. After strong Q2FY22 numbers, his stock is reportedly experiencing “upside movement”.
Federal Bank, the Indian Private sector bank is headquartered in Aluva, Kochi of Kerala. It has more than 1,250 branches spread across different states in India. Currently, one share of the bank is trading at Rs 86.05. The July 2021 shareholding pattern of Federal Bank states that Jhunjhunwala holds 5,47,21,060 shares in the company. This equals to 2.64 per cent stake in the private bank.
The stock market experts have opined that Federal Bank share prices may go up in the coming days as it has reported strong business momentum recently.
Jyoti Roy, DVP-Equity Strategist at Angel One Ltd told Mint that Federal Bank has reported strong business momentum for Q2FY22. She told the leading daily that Federal Bank advances have registered a growth of 3.4 per cent (QoQ) to Rs 1,37,3091 crore. “Deposits have registered a growth of 2.5 per cent QoQ to 1,68,743 crore while CASA ratio improved by 135 bps QoQ to 36.16 per cent,” she said.
She said that investors should also expect a sequential improvement in asset quality. There may also be a decline in credit costs for the Bank.
Sumeet Bagadia, Executive Director at Choice Broking, has advised investors to buy Federal Bank shares. He said that the share prices of the bank may go up to Rs 94 apiece in the short term.
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Source: News18