Federal Bank – Q2 FY20 (Cons – Un-Audited)
Total Income at 3,748 Cr
3,136 Cr (19.53%) YoY | 2,888 Cr (29.74%) QoQ
Half year ending at 5,905 Cr Vs. 4,793 Cr (23.34%)
Net Profit of 425.34 Cr
280.61 Cr (51.74%) YoY | 374.20 Crs (13.61%) QoQ
Half Year ending at 799.54 Cr Vs. 553.56 Cr (44.43%)
EPS (in Rs) 2.13
1.41 YoY | 1.87 QoQ
Half yearly EPS: 3.99 Vs. 2.78
Gross NPA 3,653 Cr
3,203 Cr YoY | 3,433 Cr QoQ
Net NPA at 1,879 Cr
1,812 Cr YoY 1,707 Cr QoQ
GNPA(%) 3.06 vs 3.10 YoY 2.98 QoQ
NNPA(%) 1.60 vs 1.78 YoY 1.50 QoQ
Return on asset (%) 0.26 Vs 0.20 YoY 0.23 QoQ
View: Average result and not in line with the expectation. YoY Income increased and profit also increased. The same increased for retail and treasury segment. Corporate banking which profit was showing 50 Cr in YoY quarter has posted around 46 Cr losses in current quarter. Only retail banking has salvage the company performance.
Business Updates & Highlights:
Total deposit as of Sep 2019 is INR 139,521 Cr Vs. 134,878 Cr in March 2019.
Total borrowing as of Sep 2019 is INR 8,938 Cr Vs. 8,706 Cr in March 2019.
Total advances as of Sep 2019 is INR 117,545 Cr Vs. 111,536 Cr in March 2019.
ROE and ROCE is around 11% and 6% respectively and book value per share is around INR 63 and share is currently trading at 1.3x of its book value. Mutual fund and FIIs hold around 21.4% and 37.4% in the Bank.
View: Share price high 110 and now 82 almost 25% corrected from their peak due to Gross NPAs increased and business from corporate sector is showing losses and overall downtrend for business stress.
Long term investor should still continue with the bank as banking sector is on revival path after tightening of RBI Policy.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.