Federal Bank –
Q3 FY 24 Updates –
Deposits – 2.39 lakh cr, up 19 pc
Advances – 1.99 lakh cr, up 18 pc
Gross NPAs – 2.29 vs 2.43 pc
Net NPAs – 0.64 vs 0.73 pc
PCR @ 71 vs 69 pc
Total branches @ 1418, added 65 branches in FY 24
Cost/Income @ 51.9 vs 48.9
Yield on advances @ 9.37 vs 8.78 pc
Cost of funds @ 5.81 vs 4.71 pc
NIMs @ 3.19 vs 3.55 pc
RoA @ 1.39 vs 1.33 pc
RoE @ 14.80 vs 15.91 pc
Profit and Loss parameters ( standalone ) –
NII – 2123 vs 1957 cr, up 9 pc
Fee Income – 642 vs 543 cr, up 18 pc
Operating profit – 1437 vs 1274 pc, up 13 pc
Provisions – 431 vs 471 cr
Net Profit – 1007 vs 804 cr, up 25 pc
Segment wise growth in advances –
Retail – 65k cr, up 20 pc
Agri – 25.1 k cr, up 27 pc
Business banking – 15.97 k cr, up 18 pc
CV / CE – 2.7 k cr, up 66 pc
MFI – 2.3 k cr, up 160 pc
Commercial banking – 20.7 k cr, up 26 pc
Corporate banking – 71.9 k cr, up 14 pc
High margin products for the bank include – CV/CE, Personal, Credit Cards, Micro Fin and MSME loans – this cohort now forms 24 pc of Bank’s book vs 21 pc LY
Slippages for Q3 @ 480 cr ( within limits )
CASA + Deposits < 2 cr @ 81 pc of total deposits vs 88 pc LY
One of the large accounts worth 70 cr slipped in Q3 due factory fire at client’s factory. Likely to become standard in Q4
Bank is carrying 20 pc provisions on the restructured book. Current size of restructured book at 2200 cr
Aim to take the unsecured book to 10 pc of the total book from aprox 5 pc at present
Bank holding onto its advances growth guidance of 18-19 pc for FY 24. Aim to maintain the deposits growth rates in a similar band
Capital market investments / SIPs etc are also increasingly competing with banks for saving deposits. People are becoming more tech savvy and are managing their saving accounts more actively. Term deposits are relatively insulated
41 branches out of 75 opened LY have turned positive. Bank is very particular about location while opening a new branch
Disc: holding, biased, not SEBI registered
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