01-01-1970 12:00 AM | Source: Angel Broking Ltd
Quote on Federal bank Q1FY22 results by Mr. Jyoti Roy, Angel Broking Ltd
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Below is quote on Federal bank Q1FY22 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

Federal Bank reported a 9.4% YoY increase in Net interest income for Q1FY22 to Rs. 1,481 crore on the back of 7% YoY growth in advances while NIM’s for the quarter were up by 8bps to 3.15%. Other income was up by 33.1% YoY to Rs. 650.2 crore while operating expenses were up by 9.5% YoY. As a result pre provisioning profits were up by 21.8% YoY to Rs. 933 crore. Provisioning for the quarter was up by 22% YoY and 28.3% QoQ to Rs. 933 crore. Consolidated PAT for the quarter was down by 8.4% YoY to Rs. 367 crore due to higher provisioning for the quarter. Despite the second Covid wave asset quality held up relatively well with GNPA and NNPA deteriorating marginally to 3.5% and 1.23% from 3.41% and 1.19% in Q4FY21. Covid related restructuring went up by 0.79% qoq to 1.83% of advances at the end of the quarter which is well within the management guidance. At current levels the stock is trading at 0.9xFY23 Abj. BVPS which is below historical averages. Post the Q1FY22 numbers we maintain our BUY rating on federal bank with a price target of Rs. 110 as we believe that the worst of the Covid related impact is now behind for the company.

 

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