Federal Bank Shares in Rekha Jhunjhunwala’s Portfolio Show Strong Performance

Federal Bank Shares in Rekha Jhunjhunwala's Portfolio Show Strong Performance

VoM News Desk | October 16, 2023 | 01:42 PM IST | Breaking News | Follow on Google News

Federal Bank Shares in Rekha Jhunjhunwala’s Portfolio Show Strong Performance

Federal Bank Shares in Rekha Jhunjhunwala’s Portfolio Show Strong Performance

Rekha Jhunjhunwala’s portfolio has been riding the upward wave with Federal Bank shares, which have shown a robust uptrend since hitting a low point in June 2023. This Rekha Jhunjhunwala-held stock has surged from approximately ₹120 to ₹150 per share, delivering an impressive 25% return to its shareholders in just four months. However, the stock still appears to have further potential for growth. Today, Federal Bank shares opened on a positive note and approached their recent all-time high of ₹152.30 per share on the NSE, signaling the market’s confidence in this financial institution.

Federal Bank’s Upcoming Q2 Results

The south Indian bank is scheduled to announce its Q2 results today, and market expectations are quite positive. The expectations are driven by steady growth in loans and deposits, as well as an improvement in asset quality. Nevertheless, there is a concern about a potential impact on margins due to the rise in the cost of funding. Despite this challenge, Federal Bank is anticipated to maintain better Net Interest Margins (NIMs) compared to its public sector counterparts.

Federal Bank’s Recent Performance

In Q1FY24, Federal Bank reported a net profit of ₹853.74 crore, showcasing a robust growth of 42.2% compared to ₹600.66 crore in the same period the previous year. The bank’s net interest income (NII) in Q1FY24 increased by 19.6% to ₹1,918 crore from ₹1,604.5 crore YoY. Although the net interest margin (NIM) experienced a slight contraction of 7 basis points to 3.15% from 3.22% in the June quarter of the previous year. On the asset quality front, the bank’s gross non-performing assets (GNPA) increased by 6% to ₹4,434.8 crore in the June quarter compared to ₹4,183.8 crore in the March quarter. Net NPA also saw a rise of 5.8% to ₹1,274.6 crore, QoQ.

Rekha Jhunjhunwala’s Shareholding

Rekha Jhunjhunwala’s investment in Federal Bank is substantial. As of October 11, 2023, her shareholding pattern reveals ownership of 7,27,13,440 Federal Bank shares, constituting 3.03% of the total paid-up capital of this private lender. This strong position reflects her confidence in the bank’s potential and performance.

Rekha Jhunjhunwala’s investments often serve as a barometer of market sentiment, and her continued support for Federal Bank showcases the positive outlook for the bank’s future performance.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.