IDBI Capital: Federal Bank's Adjusted Asset Quality Stable; Collection Efficiency At 95% 
A customer withdraws a stack of rupee notes at a bank branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

IDBI Capital: Federal Bank's Adjusted Asset Quality Stable; Collection Efficiency At 95% 

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

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).

Click on the attachment to read the full report:

IDBI Capital Federal Bank Q2FY21 Result Update.pdf

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