Dolat Capital: Federal Bank Posts Strong Q2 Performance  
A customer waits to deposit 100 rupee currency notes at a bank counter in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Dolat Capital: Federal Bank Posts Strong Q2 Performance  

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.

Dolat Capital Report

The Federal Bank Ltd. reported better than expected net interest income and pre-provision operating profit growth of 23% and 40% YoY respectively aided by sharp sequential growth in higher yielding gold loans and improved fee lines.

Net interest margin improved 6 basis points QoQ to 3.13%. Against a restructuring guidance of 2.5-3% of loans, the bank provided approximately Rs 4 billion or 10% during the quarter.

Additionally, management expects quarterly slippages to rise by 30-50%, ex of any large corporate account, stress in which is not envisaged currently.

Click on the attachment to read the full report:

Dolat Capital Federal Bank Q2FY21 Result Update.pdf


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