Federal Bank - Decent Quarter, Earnings Outlook Strong: Anand Rathi
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Anand Rathi Report
Lower provisions counter balanced higher opex and lower non-interest income, which led to a sharp ~50% YoY increase in Federal Bank Ltd.’s Q1 earnings.
Slippages and restructuring at ~Rs 13 billion were lower than anticipated, given the high impact of the bank’s home state due to restrictions related to the pandemic and recent floods.
With the lower formation of stress than earlier envisaged, recoveries in earnings would be better.
Given Federal Bank’s strong liability franchise and capitalisation, it is set to gain market share in the near term
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