Buy Federal Bank With Target Of Rs 350

Buy Federal Bank With Target Of Rs 350Stock market analyst Shardul Kulkarni of Angel Broking is of the view that investors can buy Federal Bank Ltd with target of Rs 350.

According to analyst, the interested investors can buy the stock on dips.

Today, the shares of the company opened at Rs 331.50 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 354.80 and a low of Rs 215.55 on BSE.

Current EPS & P/E ratio stood at 27.17 and 12.16 respectively.

Federal Bank, on June 30, fixed its base rate at 7.75% w. e. f July 01, 2010.

All new loans approved w. e. f July 1, and those falling due for renewal from July 1, (except exempt categories as per RBI Guidelines) will now be priced with linkage to base rate.

The central bank has specified that all banking institutions should reach a base rate for lending under which no loans can be broadened.

According to the new rules, subsisting clients will have to transfer to the base rate when their loan contract turns up for renewal.

The new regulation doesn't refer to finance companies, which comprise mortgage finance companies.

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