Banking credit growth is showing improvement from FY22 onwards. There is good growth especially in the retail segment. The corporate sector is in a better position in the revival of the capex cycle.
Rakesh Jhunjhunwala Portfolio Banking Stocks: Rakesh Jhunjhunwala, a veteran investor in the stock market, has more than one stock in his portfolio. These stocks also remain in the focus of the investors. If you are looking for a better stock from this portfolio, then you can keep an eye on Federal Bank. Brokerage house ICICI Securities in its latest report on the bank sector has advised buy in the shares of Federal Bank. According to the brokerage, the stock can give 24 percent return from its current price in the coming days.
Banking sector expects strong growth
Brokerage house ICICI Securities says that when it comes to the banking sector, it has been an underperformer compared to the overall market. The sector has been an underperformer mainly due to weak credit growth, risk aversion and uncertainty over accumulated stressed assets. Credit growth has been affected due to the corona virus epidemic. At the same time, recovery of challenges related to asset quality also took time. Although RBI had announced several regulatory measures, which have eased the pressure on asset quality to some extent.
However, from FY22 onwards, there is an improvement in banking credit growth. There is good growth especially in the retail segment. The corporate sector is in a better position to revive the capex cycle. Bank credit growth is expected to improve further in the coming days. Asset quality will also be better. In such a situation, this sector will get the benefit of economic recovery. Quality banking stocks can show good growth in the coming days.
Price is less than Rs 100
Shares of Federal Bank closed at Rs 97 on Thursday. Talking about today, the stock is up close to 3 percent. So far this year, where pressure has been seen on many stocks, this stock has given 15 percent return to the investors. At the same time, the return of the stock has been around 28 percent in 1 year. Brokerage house ICICI Securities has given investment advice in the stock with a target of Rs 120. In terms of current price of Rs 97, it can give 24 percent return.
Rakesh Jhunjhunwala’s stake
Rakesh Jhunjhunwala holds 3.7 per cent stake in Federal Bank as of the end of December quarter. His portfolio includes 75,721,060 shares of the bank. He held 3.7 per cent stake in the bank in the September quarter. Whereas in the June quarter it was 2.8 percent. He had 2.4 percent stake in the bank till the first two quarters.
,
