This private sector bank up 48% in 1 year hits all-time high price: Check the trigger
Federal Bank share price has hit a fresh high of Rs 203.4 as Nomura believes the appointment of Manian will drive continued re-rating for the stock.
Shares of the private sector lender Federal Bank scaled new heights in early trade on Tuesday (July 23)- hitting their all-time highs of Rs 203.4, gaining over 5 per cent from the previous close.
The stock on Monday closed at Rs 192.95 per share on the BSE.
The stock’s sharp gains can be attributed to Nomura’s reiteration of its buy call on the stock for a target of Rs 195 which has been easily breached in Monday’s trade.
The brokerage is of the view that the new CEO appointment at the lender will drive continued re-rating. Further, it views the development as +ve, as it also brings an end to uncertainty around management succession. Manian has a strong banking pedigree & diverse experience, it noted.
KVS Manian will take over as the bank’s MD and CEO with effect from September 23, 2024. The incumbent will replace the current MD Shyam Srinivas who will step down after a 14-year stint at the lender.
Manian earlier was the JMD at Kotak Mahindra Bank till April 30, 2024.
Federal Bank’s board will meet on July 24 to consider and approve the Un-audited Standalone and Consolidated Financial Results for the quarter ended June 30, 2024. Also, the company will discuss borrowing or raising funds in Indian currency or any other permitted foreign currency by way of issue of debt instruments.
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