2 Midcap Bank Stocks that Angel Broking is Positive On

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2 Midcap Bank Stocks that Angel Broking is Positive On

By Aditya Raghunath

Investing.com -- The second wave of the pandemic will result in some issues regarding asset qualities in the short term. While large banks are expected to get by on the back of huge balance sheets and adequate provisioning, mid-and-small-cap banks need to be a lot more circumspect.

Brokerage firm Angel Broking believes there are two banks that look reasonably placed to weather the short-term storm and emerge out stronger in the long run:

IIDFC First Bank Ltd (NS: IDFB ): Angel Broking is bullish on this stock and has a target price of Rs 77. That’s an upside of 30% from its closing price of Rs 59.25 on May 24. The firm said, “We believe efforts to build liability franchise, fresh capital infusion and provision taken on wholesale book will help to tide over this difficult time.”

Federal Bank Ltd. (NS: FED ): This is one of India’s oldest private sector banks and Angel Broking says the bank has kept a tight control on its non-performing assets (NPAs). Net NPA ratio for Q3FY21 was 1.14%, and provision coverage ratio was around 67% which the brokerage terms as adequate. It said, “Restructuring book is expected to be at ₹1,500-1,600 crore out of which Rs 1,067 crore has already been restructured. This is against earlier expectations of total restructuring of Rs 3,000 crore – Rs 3,500 crore.” It has given Federal Bank a target price of Rs 110, which is an upside of 27% from its May 24 closing price of Rs 86.4.

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  • Vikram Metkari @Vikram Metkari
    IDFC is at lowest now... good to buy...
    Like 0
  • Sujatha Ramji @Sujatha Ramji
    There is momentum in Federal Bank but IDFC First Bank lacks that now.
    Like 2
  • amit sarawgi @amit sarawgi
    buy union bank for a target of 40~45 in short term
    Like 3
  • amit sarawgi @amit sarawgi
    big hfcl for a target of 100 in mid term
    Like 4
  • Umesh Somanath @Umesh Somanath
    These are the best investments at this time, go for it.
    Like 0
  • Surendra Khemani @Surendra Khemani
    yes good to invest in both
    Like 3
  • Prem Dixit @Prem Dixit
    nice
    Like 0
  • Prem Dixit @Prem Dixit
    nice
    Like 2

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