Federal Bank Q4 Review - Execution Remains Key: Dolat Capital
Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)

Federal Bank Q4 Review - Execution Remains Key: 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.’s core operating metrics were behind estimates, with net interest income and core pre-provision operating profit growing at 17% and 40% respectively.

Asset quality however continued to be resilient with sequentially stable pro forma gross non-performing asset ratio and provision coverage ratio at 3.41%/65% respectively.

Pro forma slippages at 1.9% for Q4 FY21 and ~1.6% for FY21 were fairly contained and amongst the lowest in industry.

Higher profit after tax was led by sharp decline in provisions as the bank utilized most of the Covid-19 buffers made in previous quarters, aiding return on asset of 1%.

Click on the attachment to read the full report:

Dolat Capital Federal Bank Q4FY21 Result Update.pdf

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