Centrum Broking: Federal Bank’s Q1 -Higher Treasury And Opex; Moratorium Declines

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.Federal Bank’s first quarter for financial year 20-21 earnings surprised positively led by net interest income due to higher net interest margin and strong trading gains of Rs 3.0 billion. Hence, pre provision operating profit was a beat at Rs 9.3 billion. Loan growth was soft at 8% YoY though traction in housing and gold loans continued. Current and saving account ratio and registered transferable deposit growth was healthy at 19% to 14% YoY. Slippages were driven by a 20 million dollar corporate account which has been fully provided for.The quarter saw additional provisions of Rs 1.5 billion of which Covid-19 related were Rs 1.1 billion and standard asset was Rs 370 million. Stressed pool has further reduced QoQ 1.7%. Moratorium declined from 35% to 24% of loans and provisioning on the same is 62 basis points. Common equity tier 1 over 13.0% is strong. See estimated Return on assets and return on equity scale up to 0.9% to 12.2% by FY22..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Centrum Broking: Federal Bank’s Q1 -Higher Treasury And Opex; Moratorium Declines

Centrum Broking: Federal Bank’s Q1 -Higher Treasury And Opex; Moratorium Declines

Choose a plan