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Axis Securities Report
Federal bank Ltd. reported strong advances growth of 19/4% YoY/QoQ, driven by continued growth in the auto (up 27/6% YoY/QoQ), commercial vehicle (up 65/12% YoY/QoQ) and corporate book (up 19/6% YoY/QoQ).
Net interest income grew by 27/11% YoY/QoQ. Federal Bank witnessed an impressive margin expansion of 22/19 bps YoY/QoQ to 3.49% (multi-quarter high).
Core fee income continues to remain robust growing at 32% YoY aiding non-interest income growth of 10% YoY. Opex ratios remain stable at sub-50% driving pre-provision operating profit growth of 39/5% YoY/QoQ.
Provisions remained benign with credit costs of 47 bps during the quarter, driving profitability for the bank. Profit after tax grew by 54/14% YoY/QoQ.
Federal Bank's asset quality improved marginally aided by strong recoveries even as slippages from the restructured pool kept retail slippages marginally elevated.
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More Research Reports On Federal Bank's Q3 FY23 Results Reviews
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