Federal Bank Q3 Results Review - Inline; Lower Provisions Drive Earnings Beat: Motilal Oswal

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..Motilal Oswal Report.Federal Bank Ltd. reported a mixed quarter as net earnings beat our estimate by 6% driven by lower provisions and healthy other income (FedFina stake sale gains) but slippages increased while net interest margins compressed 3 basis points QoQ. Advances growth was healthy at 18% YoY/3.3% QoQ, led by robust growth in retail and commercial banking. Deposits grew 19% YoY/2.9% QoQ, aided by continued traction in term deposits. Thus, the current account and savings account ratio moderated 54 basis points QoQ to 30.6%. Slippages increased to Rs 4.8 billion, due to higher slippages in the corporate segment. Gross non-performing asset/net-non performing asset ratios were broadly stable at 2.3%/0.6%. Restructured book declined ~15 bp QoQ to 1.1%. Federal Bank reported return on asset/return on equity of 1.4%/14.8% in Q3 FY24. We fine-tune our estimates following the Q3 results and expect Federal Bank to deliver RoA/RoE of 1.3%/14.5% in FY25. We reiterate our 'Buy' rating on the stock..Click on the attachment to read the full report:.Federal Bank Q3 Results: Profit Up 25% On Higher Other Income.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 Q3 Results Review - Inline; Lower Provisions Drive Earnings Beat: Motilal Oswal

Guides for credit-deposit ratio of ~80% by CY24 end

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Federal Bank Q3 Results Review - Inline; Lower Provisions Drive Earnings Beat: Motilal Oswal

Guides for credit-deposit ratio of ~80% by CY24 end

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