Federal Bank Ltd. share price target

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...

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...

Maintain BUY with a TP of Rs 129 (2x FY19E ABV). After a heart-warming and broad based recovery over FY17, FBs 1QFY18 saw a minor blip in slippage (a one-off, in our view). This led to lower margins (despite sustained growth) and higher provisions (to keep PCR at 70%+). The quarter saw higher Corporate segment slippages (mostly relapse) and demonet/farm waiver impact on Retail and Agri segments. Encouragingly, SME slippages fell QoQ.

ICICI Securities Ltd | Retail Equity Research Accretion in GNPA came in higher at | 425 crore (|280 crore in Q1FY17 & | 244 crore in Q4FY17), led by slippage in corporate segment. Absolute GNPA increased 8% QoQ to | 1868 crore, while GNPA ratio rose 9 bps QoQ at 2.42%. Standard restructured book (including SDR, S4A and 5/25) stood at | 1326 crore (1.7% of loans). Healthy PPP growth at 31% YoY led by traction in NII and other income. Higher slippages keep provision elevated at | 236 crore....

Federal Bank has witnessed a sharp decline in SMA-2 balance, which clearly suggests fresh slippage during 1QFY18 was more of a one-off event. Hence, we expect substantial improvement in the Bank's performance in remaining quarters of FY18. Notably, the Bank is gradually coming out of the scenario marked with higher provisioning and continued stress on asset quality for last few quarters. We expect the healthy traction in earnings to continue, going forward owing to robust growth in loan book, moderate credit cost and healthy margins. We reiterate our BUY...

Federal Bank maintained steady business growth with healthy 28%YoY Loan growth and 18%YoY deposits growth in Q1FY18. PAT grew by 26% YoY, lower than our estimates largely due to higher NPA provisions which is not expected to persist. Asset quality outlook has further improved owing to reduction in large risk...

NII increased to Rs. 842.39 Cr in Q4FY17 compared to Rs. 791.39 Cr in Q3FY17. The value of NII has been increasing throughout the period.