Stock market analysts have maintained 'Buy' rating on Federal Bank stock to achieve a target of Rs 270 within 4 to 5 trading sessions.

According to analysts, investors can buy the stock on dips with a stop loss of Rs 208.

Shares of the company, on Friday (May 22), closed at Rs 228.25 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 262.40 and a low of Rs 110.50 on BSE. Current EPS and P/E of the stock stood at 28.62 & 8.15 respectively.

Federal Bank, on May 22, announced an increase of 10.99% in its net profit for the quarter ended March 31, 2009.

During the quarter, the company recorded net profit of Rs 1,141.70 million as compared to Rs 1028.60 million for the quarter ended March 31, 2008.

During the quarter, the bank's total income surged up to Rs 10,162.80 million, a growth of 20.73% over the prior year period.

The bank's directors at its meeting held on May 22, 2009 has declared a dividend of 50% on equity shares.

For the fiscal ended March 31, Federal Bank registered a 31% increase in consolidated net profit at Rs 472.01 crore. It made a net profit of Rs 360.07 crore during the last year.

The total income increased 31.66% to Rs 3,831.39 crore in the fiscal ended March 31, from Rs 2,910.16 crore in the year-ago period.

On the proposed merger proposal with the Kerala based Catholic Syrian Bank, Bank Chairman, M Venugopalan said as of today there was no such offer before the bank.

But, he refused to disclose any other details.

Federal Bank is headquartered at Aluva, Kerala. As of 2008, it had 603 branches and 505 ATMs around the country.