IDBI Capital: Federal Bank's Adjusted Asset Quality Stable; Collection Efficiency At 95%
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IDBI Capital Report
The Federal Bank Ltd.’s asset quality remains stable with gross non-performing assets at 3.0% versus 2.96% QoQ, if adjusted for slippages of Rs 2.37 billion which was not treated as GNPA due to Supreme Court decision.
Bank reported collection efficiency at 95% in September month which needs to be observed for sustainability in H2 FY21.
Credit growth was lower at 6% YoY (versus 8% Q1 FY21) due to repayments in corporate book (down 5% YoY).
Net interest income grew 23% YoY led by improvement in net interest margins, while profit after tax declined by 26% YoY due to higher provisions (up 135% YoY; Rs 4 billion Covid-19).
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