Federal Bank shares were in focus on March 1 after global brokerages upheld a positive stance on the stock.

Global research and broking firm Citi has upheld its ‘buy’ call on the stock with the target at Rs 165 per share, a benefit of 25% from the current market price.

According to the brokerage firm, the bank is gearing to orbit shift while effecting is the key. The bank has uttered a strategy for improved supply with a diversified mix.

“Federal Bank leverages digital and fintech firms and pivots towards high-margin crops. It will be significant to watch out for confirming cost, capital, and credit efficacy. Narrowing the Return on Assets (ROA) gap with peers is also a key to watch out for”, Citi said.

Morgan Stanley reserved its overweight ranking on the stock with the target at Rs 175 per share, an upside of over 33% from the current level. The brokerage firm trusts that the bank has enhanced RoA by 20 bps over the last three years, in line with 2020 supervision.

The private lender described its highest-ever net profit of Rs 804 crore throughout the quarter ending December 2022, up 54% related to Rs 522 crore in the same quarter in the earlier fiscal year. The bank’s net interest revenue for the quarter ending December 31, 2022, rose by 27.14% to Rs 1,956 crore from Rs 1,539 crore for the third quarter of FY23.

Federal Bank’s net interest border rose to 3.49% during the December 2022 quarter, complex by 22 bps YoY and 19 bps QoQ. Its loan growth was at 4.3% QoQ.

Federal Bank was trading at Rs 131.55 on the BSE at 10:12 am, up Rs 2.45, or 1.9%. It touched an intraday high of Rs 131.55 and an intraday low of Rs 129.45.