Federal Bank Ltd, is an Indian commercial bank in the private sector headquartered in Kerala having 1,271 branches and 1,941 ATM/ Recyclers with a loan book size of ~Rs1,22,912cr....

Federal Bank (FB) reported better than expected Q2FY21 performance on the operational front with uptick in NIMs, strong fee income and improved C-I leading PPOP growth of 40/8% YoY/QoQ to Rs 10,065mn.

Despite robust growth in operating profit (40% YoY), Federal Bank's (FB) Q2FY21 PAT declined 26% YoY to Rs 3.1bn as the standard asset provision buffer was raised to ~0.5% of loans (vs. ~0.2% in Q1).

Federal Bank (FB) in its business update for the quarter ended September 2020 reported an overall stable performance with growth in business/loans/deposits at 9.6/6.4/12.3% YoY and 1.3/1.4/1.2% QoQ amidst the Covid-19 crisis.

moratorium loans which have cleared all interests/EMIs Gold loans/loans against liquid securities. Business banking and commercial banking has the highest proportion of 42% and 35% presentation on the moratorium book gives us the confidence to estimate the future asset quality outlook. We estimate FY21E GNPA ratio of 3.2% & NNPA ratio at 1.8% against the current level of...

Federal Bank Ltd is an Indian commercial bank in the private sector headquartered in Kerala having 1,263 branches and 1,936 ATM/ Recyclers and a loan book size of ~Rs1,23,437cr. We roll forward our valuation to FY22E and maintain Buy rating on...

Oberoi Realty: We maintain BUY with revised TP of Rs 500 (vs Rs 538 earlier) to factor in 10-15% property price discount and recalibration of cap rates higher by 100bps to 11%. Although we expect luxury residential demand to be tepid, we remain constructive on ORL, given its comfortable balance sheet (net D/E 0.16x), strong brand recognition and new incremental 1.1mn sqft leasing in Commerz-3. We revise our EPS for FY21/22 by +38%/-35% as profit recognition for Worli 360W is expected to be in FY21E (vs FY22E earlier) and completion of residential projects could be delayed due to COVID-led disruption. Federal Bank: We maintain a BUY on Federal Bank with a target price of Rs 64. Our earnings estimates are mostly unchanged. We assign a target multiple of 0.9x FY22E, as return ratios are likely to be subdued over FY21-22E at ~0.75%, mostly due to elevated credit costs (~1.25%) and muted growth (~10%). We believe the impact of COVID-19 on the bank will be lesser than is indicated by its current valuation. Further, we like its granular liability franchise (FBs deposits (%) from retail and small business customers are the highest amongst peers). Infosys: We maintain BUY on Infosys (top pick), following 1Q revenue/margin outperformance (both absolute and relative). Key positives include the following: (1) large deal renewals (16% YoY) and largest-ever deal win (Vanguard) provide growth visibility; (2) resilience in core geography (NorthAm BFSI) and large accounts supported by demand in cloud, workplace transformation, and automation; (3) operational rigour, aided by cost optimisation (including short-term...

Federal Bank reported better than expected Q1FY21 performance on steady NIMs (~3.1%) and improved C-I (47.8%). Loan book was up 8.5% YoY and down 0.8% QoQ. NII was up 12/6% YoY/QoQ led by NIMs on account of better business mix. Higher treasury gains led to improvement in other income up 25% YoY

Team in the Asia Money poll 2020. Click Here Federal Bank (FBL) reported NII of Rs12,964mn (5.6% above our estimate), growing by 12.3% YoY and 6.6% QoQ. The deviation from our estimate was mainly on account of NIM expansion whereas we were expecting a NIM contraction (QoQ) due to high balance sheet liquidity. To our surprise, the reported NIM expanded by 3bps QoQ to 3.07% on the back of better loan book construct and growth in low-cost liabilities. The wholesale book (thin margins) declined by 2.3% QoQ (+2.6% YoY) while the retail portfolio was up 15% YoY and 1.1% QoQ. Gold loans, which are higher yielding, grew by 36% YoY and 10% QoQ. Auto, mortgage and BuB registered a decline of 1-3% QoQ. During the quarter, cost of deposits was 5.37%, down 37bps QoQ...

FB posted better than estimated earnings of Rs4.0bn (PLe:Rs2.6bn) led by relatively lower provisioning, lower opex and repeated gains in treasury. With lower strain on asset quality than trend levels due to moratorium and standstill slippages were at Rs1.9bn (middle east a/c under stress) and PCR moved up by 510bps to ~60% which was a expected outcome. Key...

Fresh slippages came much lower in Q1FY2021 at Rs. 184 crore, from Rs. 283 crore in Q4FY2020 and ~Rs. 450 crore per quarter for the preceding three quarters. NIMs have expanded by 3 bps q-o-q to 3.07% (but were down by 8 bps y-o-y)....

15 July 2020 Federal Banks (FB) PAT was higher than our estimates supported by treasury gains. However, core fee income declined sharply impacted by the lockdown and tepid loan growth. We have fine-tuned our FY21/FY22E estimates as we have moderated our fee growth assumptions and slightly increased business growth projections. 1QFY21 PAT stood at INR4.0b (~+4% YoY/+33% QoQ) significantly ahead of our estimates, mainly led by treasury gains of INR3b. The bank has prudently used the treasury gains to improve provisioning coverage and carries total COVID provisions of ~INR1.9b. NII grew 12% YoY (~INR13b) as margins increased 3bp QoQ to ~3.07%. Core fee income declined 32% YoY affected by the lockdown while higher treasury income resulted in total income growth of ~25% YoY. Opex grew ~12% YoY led by additional pension cost of INR350m. PPoP, thus, grew 19% YoY to INR9.3b while core PPoP (excluding treasury gains) declined ~9% YoY.

Federal Bank (FB) is a Kerala-based regional private sector bank incorporated on 23 April, 1931 as the Travancore Federal Bank Limited. The bank has a presence in ~25 states, the National Capital Territory of Delhi and four union territories.