Federal Bank Q2 Review - Improving Growth And Asset Quality Outlook: Dolat Capital
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Dolat Capital Report
Federal Bank reported a healthy set of numbers with in-line asset quality trends, healthy growth metrics across retail and SME portfolios, and lower provisions. De-growth in operating profits by 14% year-on-year was led by reclassification of ‘recoveries from written-off accounts’ from ‘other income’ to ‘provisions’ line, as per latest RBI circular.
Asset quality normalisation is on track with industry best annualised slippages at 1%, healthy recoveries/upgrades, and sequentially stable PCR at 66%.
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