Federal Bank Q3 Results Review - Improving Visibility On RoA Sustaining In FY23/24E: ICICI Securities

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. .ICICI Securities Report.Multi-quarter high return on asset /return on equity at 1.3% / 16% despite Rs 0.5 billion additional provision towards SR portfolio, sharp net interest margin expansion by more than 15 bps QoQ, steady decline in net stressed asset portfolio to 1.8% summarise Federal Bank Ltd.’s strong financial performance during Q3 FY23. This is an outcome of the management’s successful execution of its new business strategy revolving around scaling up of high margin products like commercial vehicle /construction equipment, micro finance institution, micro, small and medium enterprise and credit cards (put together contributes 21% of total loans), focus on profitable growth and derivation of synergies from fintech partnerships. Launch of digital personal loan with Paisa Bazzar for new-to-bank customers and cross-sell of personal loans on Fi platform are steps taken in the right direction to reap benefits from fintech partnerships..Click on the attachment to read the full report:.More Research Reports On Federal Bank's Q3 FY23 Results Review.Closing In On True Franchise Potential: HDFC SecuritiesStrong Show; Positives Largely Priced In: Dolat CapitalFlagged As A Top Pick In 2021, Marches On: Yes SecuritiesRoA Progression On A Fast Track: Motilal Oswal Yet Another Strong Quarter Of All-Round Performance: ICICI Direct.DISCLAIMERThis 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.

Federal Bank Q3 Results Review - Improving Visibility On RoA Sustaining In FY23/24E: ICICI Securities

Strong traction in earnings continued with Federal delivering multi-quarter high RoA of 1.3%.

Choose a plan