Federal Bank Ltd. share price target

NII for the Q2FY18 come at RS. 8989 mn by growing 23.8% YoY and 12.3% QoQ basis NII for the Q2FY18 come at RS. 8989 mn by growing 23.8% YoY and 12.3% QoQ basis

Maintain BUY with a TP of Rs 137 (2x Sept-19 ABV of Rs 68). After being marred by an expected yet large corp slippage in 1Q, FB delivered a stellar set of numbers. PPOP sustained an uptrend as loans (+25%) and fees (+23%) continued to grow. Stable NIMs (~3.31%, albeit up 18bps QoQ), steady asset quality (net stressed assets at ~3.1%), controlled opex and a well- diversified asset book augurs well for FB.

ICICI Securities Ltd | Retail Equity Research GNPA accretion moderated at | 284 crore in Q2FY18, led by a decline in slippage in corporate book (| 20 crore vs. | 169 crore QoQ). Absolute GNPA increased to | 1949 crore while GNPA ratio improved 3 bps QoQ at 2.39%. Standard restructured book (including SDR, S4A & 5/25) was at | 1343 crore (~1.7% of loans) Exposure to IBC related accounts was at ~| 22 crore. Provision on the same was adequate as per regulatory requirement...

Fabulous Performance on All Fronts; Maintain BUY Federal Bank has surprised the market for another quarter by delivering strong growth in operating profit and loan book. Its operating profit grew by 22.8 YoY and 4.5% QoQ to Rs5.8bn led by 23.8% YoY & 12.3% QoQ growth in NII. Provisioning expenses declined by 25.2% QoQ led by steady decline in fresh slippages and improvement in upgrades and recoveries. Consequently, its PAT grew by 31% YoY & 25.5% QoQ to Rs2.6bn in 2QFY18. The Bank showed greater resilience on asset quality front with its gross and net NPAs remaining within the Management's comfort...

Strong operating performance; Growth continues with asset quality stable Federal Bank (FB) recorded robust PPoP growth of 5%/23% QoQ/YoY (INR5.8b, 8% beat), led by 12%/24% QoQ/YoY NII growth, and controlled opex growth (+5%/+18% QoQ/YoY; 7% beat) on curbed employee expenses (+7% YoY). NII growth came in at 12%/24% QoQ/YoY (3% beat), aided by 25% YoY loan growth and an increase in the CD ratio to 83% (75%/80% in 2QFY18/1QFY18). NIM expanded 18bp QoQ to 3.31%, as 1QFY18 was impacted by interest Financials & Valuations (INR b)...

Federal Bank's 3QFY17 results were better than our expectations. PAT growth of 26.4% YoY, with stable asset quality and accelerated loan growth were the key developments during the quarter. After exhibiting meaningful improvement in FY17 both in terms of asset quality and earnings, the beginning of FY18 has, remained subdued for the bank,..

The bank's top-line performance was up as net interest income increased by 16% to Rs 801 crs compared to Rs 693 crs YoY & Rs 842 crs QoQ. Other income rose by 39% to Rs 392 crs YoY. C/I ratio for the bank dropped to 50.62% vs. 54.19% YoY and decreased sequentially by 54 bps from 51.16%. NIM contracted from 3.28% in...