Federal Bank - Focusing On Growing Profitable Segments: Nirmal Bang

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We met the management of Federal Bank Ltd. The bank maintains its guidance of loan growth at 18-20% for FY24 and is on track with return on asset improvement to 1.4% by FY25. Higher yielding segments like commercial vehicle/construction equipment, credit cards, Personal Loans, micro, small and medium enterprise (business banking plus commercial banking) and microfinance are expected to see faster growth on a low base. On the liability side, Federal Bank is focusing on cross selling current account, savings account and term deposit products to its existing customers and leveraging its relationships with wholesale clients/fintech partnerships. However, in the near term, net interest margin will be a key monitorable due to moderate increase in the cost of funds in H2 FY24. Opex ratio is expected to be elevated at more than 50% over the medium term due to continued physical expansion and digital investments. The impact of the recent Reserve Bank of India guidelines on increase in risk weights is expected to be ~50 bps on CET-1..Click on the attachment to read the full report:.Hero MotoCorp - Better Growth Visibility Driven By Recovery In Two-Wheeler Demand: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Federal Bank - Focusing On Growing Profitable Segments: Nirmal Bang

Higher yielding segments like commercial vehicle/consturction equipment, CC, personal loans, MSME (business banking, commercial banking) and MFI are expected to see faster growth on a low base

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Federal Bank - Focusing On Growing Profitable Segments: Nirmal Bang

Higher yielding segments like commercial vehicle/consturction equipment, CC, personal loans, MSME (business banking, commercial banking) and MFI are expected to see faster growth on a low base

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