Federal Bank Ltd., incorporated in the year 1931, is a banking company (having a market cap of Rs 17048.26 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 4147.77 Crore, up 3.79 % from last quarter Total Income of Rs 3996.43 Crore and up 2.28 % from last year same quarter Total Income of Rs 4055.42 Crore. The bank reported net profit after tax of Rs 356.76 Crore in latest quarter.
Investment Rationale
FB reported a slight moderation in business growth owing to a challenging environment and lockdowns across several states. However, the bank’s liability franchise remains strong, with Retail deposit mix ~93% and CASA ratio at a record high of ~35%. On the asset quality front, slippages stood elevated from the Retail/Agri/SME segments as the second COVID wave has severely affected the Selfemployed segment and impacted the rural economy as well. The bank prudently utilized higher treasury gains/one-off recovery from written-off accounts towards provisions to further strengthen its Balance Sheet and stabilize PCR. The brokerage maintains earnings and estimate RoA/RoE at 1.1%/13.8% for FY23E.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of June 30, 2021, while FIIs held 25.1 per cent, DIIs 43.3 per cent and public and other 31.6 per cent.
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