Federal Bank Ltd. share price target

In Q1FY17, the bank reported 19% loan growth, which further accelerated to 27% in Q2FY17, backed by 47% jump in corporate loan book. Retail loans also were strong. Gold loan, which had been under pressure and also saw degrowth in previous quarters, saw a comeback thus contributing to the growth. While the process of demonetization is like..

Federal Banks (FB) healing continues despite reported impairment at 1.7%. Notably, this metric has continuously for the trailing four quarters and is below 2% after six painful quarters. Patient investors have, unsurprisingly, reaped the reward (70% in the trailing six months).

ICICI Securities Ltd | Retail Equity Research Post higher slippages in H2FY16, the pace of GNPA accretion has slowed at | 266 crore in Q2FY17, led by decline in slippages across segments including corporate exposure. The bank does not have any SDR or 5:25 restructuring. Absolute GNPA was at | 1819.7 crore (GNPA ratio eased 14 bps QoQ at 2.78%). The standard RA book stood at | 1493 crore (2.3% of loans) Healthy growth in PPP at 41% YoY to | 475 crore, owing to 19.4% in...

Federal Bank Ltd. is a private commercial bank headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across 25 States and 5 Union Territories in India. The Bank was incorporated in 1931 and became a scheduled commercial bank in 1970. Federal Bank has a balance sheet size of Rs 938 billion. FED mainly caters to four segments -Corporate, retail (including NRI), SME and agriculture. Barring agriculture, which is present only on the application side, the remaining three...

Federal Bank (FB) reported better performance led by healthy 19% loan growth, stable asset quality, improving CASA ratio (32.8%, 40bps QoQ), steady margins (3.3%) and higher fee traction ( 34%). This led to higher-than-estimated core ( 14%) and net earnings (18%).

ICICI Securities Ltd | Retail Equity Research GNPA accretion has slowed at | 280 crore in Q1FY17 (| 536 crore in Q4FY16 and | 317 crore in Q1FY16) led by a decline in slippages across segments including corporate exposure. The bank does not have any SDR or 5:25 restructuring. Absolute GNPA was at | 1747 crore (GNPA ratio of 2.92%). The standard RA book reduced from | 1382 crore in Q4FY16 to | 1348 crore (3.1% of loans) Healthy growth in PPP at 16% YoY to | 426 crore, owing to 14.5% in...

Net profit of Federal Bank grew by 18.3% yoy (+1530% qoq) to Rs1.67bn 1QFY17 led by higher other income that rose by 22.2% yoy & 4.5% qoq to Rs2.37bn along with decline in provisioning and operating expenses. The Bank witnessed strong growth in other income owing to higher treasury income that grew by 118% yoy (102% qoq) to Rs830mn. Operating expenses declined by 2.8% qoq due to lower other operating expenses leading to improvement in cost to income ratio to 54.2% in 1QFY17 compared to 56.8% in 4QFY16 & 54% in 1QFY16. Provisioning expenses saw 56.6% sequential decline owing to lower growth in incremental...

ff The Bank did not carry out SDR and 5/25 refinancing in 4QFY16. It sold loan worth Rs1.3bn to Asset Reconstruction Company (ARC) ff Restructured book declined to 2.45% of total loan book in 4QFY16 from 4.3% in 3QFY16 due to part conversion of SEB loan in UDAY bonds and downgrade of remaining SEB loan to NPA category ff Business growth revived as loan book grew by 10.1% qoq and 13.3% yoy led by 17.9% qoq growth in corporate loan book and 8.1% qoq rise in SME loan book ff The Bank's Management aims loan growth at ~18-20% in FY17E and it will now...

ICICI Securities Ltd | Retail Equity Research GNPA slippages stayed elevated at | 536 crore mainly occurring in corporate (| 254 crore) & SME segment (| 154 crore). The bank does...

Federal Banks (FB) 4Q performance was underscored by strong QoQ momentum (across segments), CASA and NIM improvement. However, elevated and broad-based slippages continued to test investors? patience. FB barely broke even, hit by provisioning (on AQR and non-AQR). The decline in GNPAs was optical, led by high w/o and ARC sale.