Monday, October 25, 2021

Federal Bank Q2 reports 54.6% growth in net profit | Impact & Outlook


Federal Bank Q2 reports 54.6% growth in net profit at Rs488cr on sharp fall in provisioning for doubtful assets

Federal Bank Ltd reported -1.42% yoy fall in total consolidated revenues in the Sep-21 quarter at Rs4,013cr


Federal Bank Ltd reported -1.42% yoy fall in total consolidated revenues in the Sep-21 quarter at Rs4,013cr. Revenues were also down -0.89% on sequential basis. In terms of segmental top line, revenues from treasury and corporate banking were lower on a yoy basis.


However, the revenues from retail banking were about 8% higher on robust growth even in the midst of lower yields on loans. Net interest income for the quarter grew by 4% sequentially to Rs1,479cr.

In terms of operating performance, Federal Bank saw its operating profit fall by -6.47% on a yoy basis although the profits were sharply lower by -13% on a sequential basis.

The net interest margins or NIMs was relatively strong at 3.20%. CASA grew at 18% yoy while the ratio of CASA to total deposits stood at 36.16%.


Stock Outlook

Long term intact hold, buy on dips. In short term stock can test 112- 118 .


Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.


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