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Federal Bank Q1 Review - Strong Quarter, Improvement In RoAs Continues: Anand Rathi

Federal Bank Q1 Review - Strong Quarter, Improvement In RoAs Continues: Anand Rathi

<div class="paragraphs"><p>Indian rupee notes.&nbsp;(Photo: Vijay Sartape/BQ Prime)</p></div>
Indian rupee notes. (Photo: Vijay Sartape/BQ Prime)

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.

Anand Rathi Report

Federal Bank Ltd.'s higher margins and lower opex led to a 721 basis points betterment of the cost/income ratio. Strong operating performance and benign credit cost (41 bps) led to improved return on asset.

Asset quality was stable as slippages were in line with expectations. With the formation of stress lower than earlier envisaged, recoveries in earnings would be better.

Given Federal Bank’s strong liability franchise and capitalisation, it is set to gain market share in the near term.

Click on the attachment to read the full report:

Anand Rathi Federal Bank Q1FY23 Result Update.pdf

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