Federal Bank Shares Gain As Total Deposits Increase In Q2
The bank's total deposits rose 23% YoY to Rs 2.33 lakh crore and gross advances increased 20% YoY to 1.96 lakh crore in Q2.
Shares of Federal Bank Ltd. rose in early trade on Tuesday after its total deposits rose in the second quarter.
The bank's total deposits rose 23% year-on-year to Rs 2.33 lakh crore and gross advances increased 20% year-on-year to 1.96 lakh crore over the same period, according to provisional numbers released on Sunday.
Retail credit books grew by 22% year-on-year, and wholesale credit books grew by 17% year-on-year, the bank said in an exchange filing.
The CASA deposits were up 5% year-on-year to Rs 72,592 crore. With this, the CASA ratio for the quarter ending Sept. 30 stood at 31.17%, down 68 basis points from the previous quarter.
Certificates of Deposit more than doubled to Rs 9,940 crore, compared to Rs 4,186 crore in the same quarter the previous year.
Shares of Federal Bank rose 3.46% before paring gains to trade 2.11% higher as of 10:28 a.m. This compares to a 0.67% decline in the NSE Nifty 50. The stock is up 8.97% year-to-date.
Total traded volume so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 61.70, implying that the stock may be overbought.
Of the 39 analysts tracking the company, 36 maintain a 'buy' rating and three recommend a ‘hold’, according to Bloomberg data. The average 12-month consensus price target implies an upside of 8.6%.
