Federal Bank Hits Life High After Gross Advances Jump 20%

Shares of Federal Bank Ltd. gained to hit a fresh record high on Wednesday after its gross advances jumped in the first quarter.

The private bank's gross advances surged 20.1% year-on-year to Rs 2.24 lakh crore in the first quarter ended June 30, according to an exchange filing.

On an annualised basis, Federal Bank's retail credit book rose 25% and its wholesale credit book rose 14% during the same period, the filing said.

The lender's retail-to-wholesale ratio stands at 56:44 as of June 30, the bank said. The CASA ratio was at 29.28% in April-June, compared to 31.85% a year ago, the lender said.

• Total deposits rose 19.6% to Rs 2.66 lakh crore

• Gross advances rose 20.1% to Rs 2.24 lakh crore

• CASA rose 9.9% to Rs 77,901 crore

Source: Exchange filing

Shares of Federal Bank rose 4.73% to their record high of Rs 183.30 apiece. It was trading 4.16% higher at Rs 182.30 as of 10:32 a.m., compared to 0.65% advance in the NSE Nifty 50 index.

The stock gained 43.61% in last 12 months and 17.26% on year-to-date basis. Total traded volume so far in the day stood at 5.3 times its 30-day average. The relative strength index was at 69.20.

Out of 42 analysts tracking the company, 32 maintain a 'buy' rating, seven recommend a 'hold,' and three suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.7%

The NSE Nifty Bank rose 2.09% to a fresh high of 53,256.70 tracking gains in HDFC Bank Ltd., ICICI Bank Ltd.

Market cap of banks' grew Rs 71,166 crore to Rs 42.53 lakh crore as of 11:44 a.m.

Federal Bank lead gains in the Nifty Bank index along with HDFC Bank Ltd., and IDFC First Bank as of 11:50 a.m.

Punjab National Bank, and AU Small Finance Bank Ltd. rose the least among the constituents.

The gauge is the best performing sectoral index on the National Stock Exchange after Nifty Finance.