Federal Bank - Exceeding Expectations In Q3: Dolat Capital
A stack of Indian one-hundred rupee banknotes are arranged for a photograph at a bank in India. (Photographer: Dhiraj Singh/Bloomberg)

Federal Bank - Exceeding Expectations In Q3: Dolat Capital

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Federal Bank Ltd. reported strong net interest income growth of 24% YoY on the back of declining cost of funds, aided by to 9 basis points sequential improvement in net interest margin to 3.2%.

Strong traction in core fee lines aided pre-provision operating profit growth of 29% YoY despite higher employee costs.

Pro-forma slippages at Rs 8.3 billion or 2.7% (annualised) during Q3 FY21 were contained. We do not expect FY21E slippages to exceed that of previous year at 1.75%.

Pro forma gross non-performing asset increased by 30 basis points QoQ to 3.38%, with marginal write-offs during the quarter.

Click on the attachment to read the full report:

Dolat Capital Federal Bank Q3FY21 Result Update.pdf

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