The shares of Federal Bank inclined by 4% at ₹95.80 per share against the previous close at ₹92.00 per share, in today’s early trade.
The Financial company-Motilal Oswal has come out with its third-quarter (October-December 21) earnings estimates for the Banks sector. The brokerage house expects Federal Bank to report net profit at ₹467.5 crore up 15.7% year-on-year (up 1.6% quarter-on-quarter).
Net Interest Income (NII) is expected to increase by 6.2% Y-o-Y (up 3.1 percent Q-o-Q) to ₹1,525.7 crore, according to Motilal Oswal. Pre Provision Operating Profit (PPOP) is likely to fall by 3.5% Y-o-Y (up 7.5% Q-o-Q) to ₹929.6 crore.
Private lender Federal Bank’s loan book grew by 12% on a year-on-year (YoY ) basis to ₹143,633 crore at end of December 2021 from ₹1,28,180 crore a year ago. Its pace of loan book expansion was higher than the 7.3% YoY growth shown by commercial banks in India as a group till mid-December 2021
Kochi-based bank’s advances were up by 4.6% sequentially from ₹1,37,313 crore at end of September 2021 (Q2Fy22). Federal bank’s deposits grew by 9% YoY to ₹1,75,432 crore in December 2021. Sequentially, its deposits rose by two per cent from ₹1,71,997 crore at end of September 2021.