Federal Bank trades in green after board approves additional director appointment

Shares of Federal Bank jumped nearly 1 percent in early trade on September 6 post the appointment of a new additional director.

At 11:31 am the Federal Bank stock was trading 0.21 percent higher at Rs 144.45 on NSE.

Details of the new appointment

The Federal Bank board approved the appointment of Elias George as an additional director (Independent) of the bank. This appointment comes into effect from September 5, with a tenure extending for a period of five years, pending approval from the bank’s shareholders.

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Independent directors play a crucial role in ensuring transparency, accountability, and ethical conduct within an organisation. Elias George’s wealth of experience and expertise is expected to bring fresh insights and guidance to Federal Bank, as detailed in the corporate filing.

Brokerage Views

Brokerage firm Motilal Oswal, has expressed optimism about Federal Bank’s stock. In their research report dated July 13, 2023, they’ve advised investors to “buy” the stock. They’ve set a target price of Rs 155.

Brokerage firm LKP Securities has given a ‘buy’ rating to the Federal Bank stock in a research report dated July 16. The 12-month target price given by the brokerage firm for the Federal Bank stock is Rs 160 per share. The firm further stated that, “Net Interest Margins (NIMs) appear to have reached their lowest point, and there is confidence in the robustness of earnings sustainability.”

Stock Performance

The Federal Bank stock has given a return of 7.64 percent over the past six months. The benchmark Nifty Bank index has also given a similar return of 7.69 percent over the same duration.

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