Federal Bank Ltd. share price target

We expect advance growth at 18% CAGR for FY17-19E led by growth in Corporate, SME and Retail portfolio. Going forward, managements focus would be on containing slippages from its corporate book, reduce its cost of borrowings and also increase lending towards retail and SME.

The bank's top-line performance was up as net interest income increased by 23% to Rs 842 crs compared to Rs 686 crs YoY & Rs 791 crs QoQ. Other income rose by 19% to Rs 282 crs YoY. C/I ratio for the bank dropped to 51.16% vs. 56.78% YoY and decreased sequentially by 381 bps. NIM expanded from 3.31% in corresponding...

ICICI Securities Ltd | Retail Equity Research Federal Bank posted strong numbers with PAT above our estimates NII came in at | 842 crore, in line with our estimate. This was mainly led by healthy credit offtake at 24.7% YoY to | 73336 crore. Margins improved 10 bps QoQ to 3.42% partly aided by higher low-cost deposits received during demonetisation Asset quality continues to improve with slippages at | 244 crore lowest in the last seven quarters. GNPA ratio declined to 2.33% from...

Federal Banks (FB) 4Q performance was robust on all fronts, with broad-based loan growth (26%) healthy fee growth (37%) and steady NIMs (3.4%). Opex ( 9%) was controlled despite one-offs. Oplev was visible, with a sharp 380bps QoQ drop in C-I ratio. With lower slippages and ARC sale, asset quality saw a sharp improvement.

Federal Bank has surprised the market for another successive quarter by delivering strong growth in operating profit and loan book in 4QFY17. Its operating profit grew by 39.2 YoY & 15.6% QoQ to Rs5.5bn led by 22.8% YoY & 6.4% QoQ growth in NII and 41% YoY & 21.5% QoQ growth in other income. Provisioning expenses saw 68.4% YoY and 22.7% QoQ decline led by steady decline in fresh slippages along with improvement in upgrades and recoveries. Consequently, its PAT grew by 24 times YoY and 24.8% QoQ to Rs2.6bn. The Bank showed greater resilience on asset quality front with its gross and net NPAs remaining within the Management's comfort zone. Fresh slippages stood at Rs2.4bn in 4QFY17 compared to Rs2.9bn in 3QFY17 and Rs5.4bn...

ICICI Securities Ltd | Retail Equity Research Federal Bank looks well poised for a healthy earnings trajectory, going ahead. This is on account of its superior fundamentals given its relative strength with CASA deposit at 34.7%, ability to generate higher NIMs of 3.2-3.3% and a healthy capital base (Tier at 12%). Further, credit growth, which was muted in FY12-16 at 9% CAGR has improved to >20% YoY in FY17E. We expect this healthy traction in advances to sustain in FY1719E. Asset quality, which along with poor credit growth was impacting bank's earnings, has witnessed an improvement since FY16. Slippages,...

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 witnessing lot of stress in the loan book in FY16, Federal Bank started showing improving in asset quality from the beginning of FY17 and the tr..

ICICI Securities Ltd | Retail Equity Research Post higher slippages in H2FY16, the pace of GNPA accretion has continued slower at | 273 crore in Q3FY17, primarily led by a decline in slippages in SME segment. Absolute GNPA was at | 1951.6 crore (GNPA ratio eased 1 bps QoQ at 2.77%). RA declined from | 2012 crore in Q2FY17 to | 1964 crore (2.8% of loans). There was no account restructuring in terms of 5/25 scheme, SDR or sale to ARCs PPP growth was healthy at 46% YoY to | 475 crore due to 30.8% in...

Federal Bank (FB) reported strong earnings at Rs 206 cr which grew by 26% YoY (up 2% QoQ). These strong earnings were mainly on account of strong loan growth and improvement in margins. Loan growth improved to 32% YoY (8% QoQ) from 27% in Q2FY17 on the back of increase in corporate loan (up 53% YoY)..

NII rose to Rs. 791.39 Cr in Q3FY17 compared to Rs. 726.19 Cr in Q2FY17. NII rose by 30.66% ( Rs. 185.7 Cr ) when compared with the same period last year. The value of NII has been increasing throughout the period.