India Ratings and Research (Ind-Ra) has revised Outlook on The Federal Bank Limited's (FBL) Basel III Tier 2 bonds to Positive from Stable while affirming the rating at 'IND AA'.
The Positive Outlook reflects the consistent strengthening of FBL's credit profile as reflected in its progressing liability franchise, improving diversification of its loan portfolio outside home state (Kerala), reasonably well-managed asset quality and stable credit costs even as come out of the impact of the COVID-19 pandemic and reasonable operating performance, which should further improve as the bank's pension cost gets realigned, thereby moderating its above average operating costs. The bank has tied up with multiple new age companies, which is helping the bank to grow on asset-liability side as well as strengthen its internal skillsets. The rating, however, also takes in to account bank's limited diversity in income profile as fee income franchise remains modest compared to its peers'.
Shares of The Federal Bank Limited was last trading in BSE at Rs. 97.40 as compared to the previous close of Rs. 97.00. The total number of shares traded during the day was 442441 in over 2785 trades.
The stock hit an intraday high of Rs. 98.25 and intraday low of 96.25. The net turnover during the day was Rs. 43000414.00.