Federal Bank Ltd
Market Cap 29,818Cr
CMP 141
P/B 1.3xFY23
Results |
(INR Cr) |
YoY Growth |
Comments |
Advances |
1,68,173 |
19% |
Loan Growth of 18-20% across segments |
Net Interest Income |
1957 |
27% |
NIM increased by 0.22% to 3.49% year on year |
Net Profit |
804 |
54% |
Fee Income improved by 32% to 543 Cr, while provisions reduced by 7% to 198 Cr |
Check Federal Bank 10 year X-ray here
Key Highlights –
· Retail advances (54% of loan book) grew by 18%; Wholesale Advances (46% of book) grew by 19%.
· Deposits increased by 15% to 201,408 Cr, CASA Ratio at 34.24%.
· 50.4% of the book is floating- linked to ELBR (External Benchmarks Lending Rate).
· GNPA at 2.43% decreasing by 0.63%, while NNPA at 0.73% decreasing by 0.32% on yearly basis. Cost of Credit rose to 0.38% vs. 0.22% in Q3FY22.
Management Outlook –
· Management guided on NIM pressure as rates increase following quarter, with 3.35-3.4% guidance for FY23
· Management guided on high-teens growth in advances in FY24 across segments.
· Management expects to open 15 additional branches this year, with 80-90 new ones in FY24 & 25.
· Cost of funds may move up by 0.2%, while advances by 0.25-0.3% per quarter in future, based on rate hikes by RBI.