Live
- KSS unit to be set up in Madakasira
- Narrow roads lead to frequent traffic jams in Kurnool
- Bengal bypolls: TMC leading in all six seats after 2nd round of counting
- Stimulating NREM sleep can boost cognitive function, memory
- EO releases TTD employees’ cricket team Jersey
- Priyanka Gandhi leads by 90,000 votes in Wayanad, Cong edges out BJP in Palakkad Assembly seat
- US CDC confirms H5N1 bird flu infection in child in California
- Dispose dump yard garbage in 3 months: TTD EO
- Gold rates in Vijayawada today surges, check the rates on 23 November, 2024
- Gold rates in Hyderabad today surges, check the rates on 23 November, 2024
Stock Update - Federal Bank
Federal Bank Q1FY24 update – Strong business growth at 21% YoY - Gaurav Jani - Research Analyst, Prabhudas Lilladher Pvt Ltd♦ Gross advances growth...
Federal Bank Q1FY24 update – Strong business growth at 21% YoY - Gaurav Jani - Research Analyst, Prabhudas Lilladher Pvt Ltd
♦ Gross advances growth was strong at 21% YoY/5.2% QoQ.
♦ Loan growth was driven by corporate, +21.6% YoY while retail grew at 20.2% YoY.
♦Sequentially wholesale/retail growth was ~3%/6% (Retail:wholesale mix steady at 54:46)
♦ Deposit accretion was at 21.4% YoY and 4.3% QoQ; wholesale TD growth was higher to that of retail
♦ CASA at 31.9% was down 83bps QoQ and 500bps YoY with growth of 1.6% QoQ & 4.9% YoY.
♦ At CMP of Rs126 stock is trading at 1.2x/1.1x FY24E/FY25E. We have a BUY rating with a TP of Rs170 (1.5x Mar-25 ABV).
PL View
Provisional numbers were a bit mixed; while retail growth sequentially was a bit higher at 5.5%, wholesale continues to grow. Hence growth in the higher yielding retail pool is the key monitorable which could decide the NIM trajectory for Q1’24. Also, bank seems to incrementally rely on wholesale deposits; RTD+CASA in Q4FY23 made up 88.4% of deposits (94% in Q4FY22).
