Steady quarter; prepping for next phase of growth

Company
30 Oct 2024
5 Min read 
  • Federal Bank's financials and valuations show steady growth and robust asset quality.
  •  The bank reported a slight earnings beat and healthy credit growth.
  •  NIM contracted 4bp due to penal charges affecting 7bp of NIMs in 2Q.
  •  The bank is well placed to deliver a healthy earnings trajectory.
  •  Retain BUY rating with a TP of INR230 (premised on 1.5x FY26E ABV).
  •  Loans and deposits grew 19.4% and 15.6% YoY respectively.
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