BQ Blue'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 BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Yes Securities Report
It may be noted that Federal Bank Ltd.'s annualised slippage ratio of 1.3% is the best among our coverage banks that have reported so far, including HDFC Bank Ltd. at 1.6%.
Net slippage, in any case, is in negative zone. Though restructured book at 259 basis points of advances looks optically somewhat higher than some key larger private sector peers, it is a relatively safe book. 98% of this book is derived from secured loans, primarily from segments with low loss given default for Federal Bank.
Collection efficiency for this book is 96%, the same as that for the whole bank.
Management stated that Federal Bank can grow a key set of high-yield segments in credit cards, personal loans, microfinance and commercial vehicle loans by Rs 75 billion in about two years.
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