Federal Bank Management Guidance Tracker

Management confirmed they are on track to achieve 1.4% ROA by end of 2024, with an aspirational target of 1.5% over the next 18 months.

Despite deposit cost pressures, the bank expects to sustain loan growth of around 18%, with possible mix adjustments.

Guidance for credit cost to normalize to around 30 basis points in FY25, up from 23 bps in FY24.

Targeting return on assets to improve from current 1.27% to 1.30-1.35% over the year.

Management reiterated loan growth guidance of around 18% for FY25, with focus on deposit mobilization rather than slowing advances.

Management expects overall loan growth to be better than the 12% reported for FY25, driven by mid-yielding segments and revival in gold loans.

MD reiterated the strategic target to reach 36% CASA ratio over three years, from current ~30%.

Management indicated a target of high-teens loan growth, around 16% for the next fiscal year, driven by mid-yield segments.

Management reiterated the medium-term target of 36% CASA ratio, achievable given recent strong momentum.

The bank plans to bring its CD ratio down from ~83% to ~80% by calendar 2024 through balanced growth in deposits and loans.

CFO reiterated credit cost guidance of 35-40 bps for FY25, which was achieved at 38 bps.

The first tranche of strategic investment from Blackstone is expected to close in Q4 FY26, pending final regulatory approvals.

Management expects ROA to continue expanding by 4-5 basis points each year, driven by income growth and cost control.

Management expects credit cost to remain in the range of 30-35 basis points for the full year, consistent with Q1's 27 bps.

Net interest margin expected to remain around Q1 levels for the next couple of quarters, with dynamic review thereafter.

Full-year credit cost guidance remains at 29-30 basis points, supported by strong asset quality and conservative underwriting.

ROA guided at ~1.8% for the full year, with potential slight improvement if rate cuts occur later.

CFO guided cost-to-income ratio to remain in the 52.5%-53.5% range over the next few quarters.

Management expects NIM to remain near 3.18% in Q4 FY26, as the full impact of the December rate cut will be offset by liability mix and asset repricing actions.

Credit cost for FY26 is expected to be in the range of 55-60 bps, with Q4 likely lower than Q3's 47 bps.

Management expects further NIM improvement through deposit repricing, liability mix shift, and asset mix optimization.

Credit cost guidance remains unchanged at 50-60 basis points, though subject to review based on geopolitical clarity.

Core fee income is expected to grow 20-25% year-on-year in FY25, driven by card fees, loan processing fees, and other products.

Plans to add at least 100 new branches in FY25, continuing the network expansion strategy.

Plans to add approximately 100 branches in FY25, with ~40 in H1 and balance in H2.

Planned branch expansion of about 100 branches in the next fiscal year, supported by data-driven network strategy.

Bank plans to raise INR 1,500 crore via infrastructure bonds to fund infrastructure assets, a first for the bank.