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.
IDBI Capital Report
The Federal Bank Ltd.'s asset quality improved as gross non-performing asset stood at 3.06% versus 3.24% QoQ led by higher recoveries and upgrades. Stressed book percentage of assets remains stable at 2.61% versus 2.62% QoQ.
Credit growth improved to 12% YoY versus 10% YoY (Q2 FY22); Deposits growth stood at 8.5% YoY versus 10% YoY (Q2 FY22).
Net interest income grew by 4% QoQ led by improvement in net interest margins.
Federal Bank's operating profit remains flat sequentially due to higher operating expenses (up 5% QoQ).
Provisions declined by 27% QoQ led to strong profitability growth (up 13% QoQ) which resulted into return on asset at 1.02%. Management targets RoA to reach 1.2% in next two years.
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