BQ Blue'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 BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Federal Bank Ltd. reported a profit after tax of ~Rs 3.7 billion in Q1 FY22, led by strong other income (recovery from a written-off accounts and treasury gains of Rs 2.6 billion).
It prudently deployed these gains towards provisions, which stood elevated at Rs 6.4 billion (63% YoY increase), to further strengthen its balance sheet.
Federal Bank posted a moderation in business growth, with loans across most segments declining sequentially.
Deposit growth was muted, while the current account and savings account ratio touched ~35% (record high levels).
On the asset quality front, higher disruption due to the second Covid-19 wave caused elevated slippages of Rs 6.4 billion (annualised ~2% of loans), though higher write-offs led to stable asset quality ratios.
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