Federal Bank Q1 highlights –
Deposits at 2.22 lakh cr, up 21 pc yoy
Advances at 1.83 lakh cr, up 21 pc yoy
RoA at 1.30 vs 1.10 yoy
RoE at 15.73 vs 12.70 yoy
GNPAs at 2.23 vs 2.69 pc yoy
NNPAs at 0.69 vs 0.94 pc yoy
Total branches at 1366, opened 12 new branches this Qtr
NIMs at 3.15 vs 3.22 yoy
Cost/Income at 50.87 vs 52.68 pc yoy
NII at 1919 vs 1605 cr yoy
Fee Income at 535 vs 441 cr yoy
Other income at 732 vs 453 cr yoy
Net profits at 854 vs 601 cr yoy
PCR at 70vs 65 pc yoy
Cost of deposits at 5.32 vs 4.20 pc yoy ( big jump )
Yield on advances at 9.21 vs 7.94 pc yoy
High margin segments like credit cards, personal loans, CV/CE loans, MSME loans, Gold loans, Micro finance now constitute 34 pc of the book and growing faster than the bank
Credit cost at 0.41 vs 0.41 yoy. It was 0.19 in Q4
Aim to grow advances and deposits at 18-20 pc for FY 24. In Q1, achieved the same
Credit demand remains good well into July
Withdrawal of Rs 2000 notes did help the bank on garnering additional deposits
Uptick in retail slippages is due to the retail restructured book coming out of a 2 yr moratorium in Mar 23. But the same is on expected lines. Seeing no special stress in the retail book
Currently, 45 pc of the total deposits come from outside Kerala …growing faster than Kerala Mkt
Percentage of retail deposits ( out of the total deposits ) currently at 86-87 pc
Avg cost of funds in Q2 to go up from 5.2 to 5.3 pc but the yield on advances will increase by more than 10 bps and hence margins are likely to expand
NIM compression has bottomed out. Should start to expand going forward, starting Q2
Momentum in fee income seen in Q1 likely to continue in the rest of the year as well
Bank seeing robust momentum in NRIs deposit mobilisation in last 45-50 days
Seeing intense competition in the home loans segment wrt rates
Guiding for a full FY 24 NIMs to be at 3.30 levels which means descent NIM expansion going fwd
Expect Opex also to moderate slightly going fwd
Total restructured book at around 2500 cr. Holding a provisions of aprox 25 pc against the restructured book
Expect to hit RoA of 1.35 by end of FY 24 and 1.42 by end of FY 25
Disc : holding from 115 levels. Don’t intend to add/reduce
| Subscribe To Our Free Newsletter |
