BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Yes Securities Report
We maintain ‘Buy' rating on Federal Bank Ltd., which has been one of our top picks since June 2021, with an unchanged price target of Rs 190.
We value the standalone bank at 1.3 times FY25 price/book value for an FY24E/25E/26E return on equity profile of 14.6%/15.0%/15.6%. We assign a value of Rs 8.7 per share to the subsidiaries, on SOTP.
Result Highlights:
Asset quality: Federal Bank's gross slippages amounted to Rs 3.73 billion (annualised slippage ratio of 0.8%) and recoveries and upgrades were at Rs 3.59 billion.
Margin picture: Net interest margin at 3.16% was up 1 bp QoQ where the negative impact of incremental cash reserve ratio and positive impact of capital raise canceled each other out.
Asset growth: Advances grew 5.0%/19.5% QoQ/YoY driven sequentially by retail, agriculture, business banking, commercial vehicle/construction equipment, micro finance institutions and cost of borrowing loan segments.
Opex control: Total opex rose 8.4%/26.2% QoQ/YoY, staff expenses rose 1.6% /21.5% QoQ/YoY and other expenses rose 14.2%/29.9% QoQ/YoY.
Fee income: Fee income rose 14.5%/29.6% QoQ/YoY, sequentially driven higher by cards and para banking.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
