Federal Bank strong re-rating candidate; offers 27% upside: Prabhudas Lilladher

“On opex, decline in employee cost was led by lower pension provisions and FB expects cost–income (C/I) to reduce by ~200bps in FY23 over FY22. Plan is to add 30-40 branches per annum. The bank expects C/I to settle near 49% in FY24. Slippages were controlled at Rs 3.9 billion while recoveries were healthy at Rs 3.3 billion.