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View Promises →The Federal Bank Limited — Q3 FY24
Federal Bank reported a historic PAT of INR 1,007 crore in Q3 FY24, its first four-digit profit, driven by strong business momentum and strategic branch expansion.
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Federal Bank reported a historic PAT of INR 1,007 crore in Q3 FY24, its first four-digit profit, driven by strong business momentum and strategic branch expansion. NII also reached an all-time high. The bank maintained robust asset quality despite a one-off corporate slippage of ~INR 70 crore, which is expected to upgrade in Q4. Management reiterated its focus on achieving a 1.4% ROA by end of 2024 and targeting 1.5% ROA over the next 18 months. Deposit growth remains a challenge due to high cost and structural shifts in NR deposits, but the bank aims to moderate its CD ratio to ~80% by calendar 2024. Risks include potential margin compression from rising deposit costs and regulatory changes like AIF provisioning. Overall, the bank is confident in sustaining growth and return ratios.
फेडरल बैंक ने इस बार का मुनाफा (PAT) 1,007 करोड़ रुपये दर्ज किया, जो अब तक का सबसे बड़ा है। यह पहली बार है जब बैंक का मुनाफा चार अंकों में पहुंचा है। इसकी वजह अच्छा कारोबार और नई शाखाएं खोलना है। बैंक की ब्याज से होने वाली कमाई (NII) भी सबसे ज्यादा रही। कर्ज की गुणवत्ता मजबूत बनी हुई है, हालांकि एक कंपनी का 70 करोड़ रुपये का कर्ज डूब गया, लेकिन अगली तिमाही में यह सुधरने की उम्मीद है। बैंक का लक्ष्य 2024 के अंत तक 1.4% और अगले 18 महीनों में 1.5% ROA (मुनाफा/कुल संपत्ति) हासिल करना है। जमा बढ़ाना चुनौती है, खासकर एनआरआई जमा में बदलाव के कारण। बैंक 2024 तक अपना कर्ज-जमा अनुपात (CD ratio) 80% तक लाना चाहता है। जोखिमों में ब्याज दर बढ़ने से मुनाफा कम होना और नियमों में बदलाव शामिल हैं। फिर भी बैंक को अपनी वृद्धि पर भरोसा है।
Promises0 met · 3 missedRisks4 trackedTranscriptfull text
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Deposit cost pressure and margin compression
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Net Profit
INR 1,007 crore
First four-digit profit
Historic milestone for the bank, reflecting strong operational performance.
Branch Additions in H1
65 branches
+30 branches in Q3
Strategic expansion to enhance deposit mobilization and customer reach.
Credit-Deposit Ratio Target
~80%
From ~83%
Management aims to reduce CD ratio by calendar 2024 to align with regulatory comfort.
ROA Target
1.4%
On track for end-2024
Bank is on course to achieve 1.4% ROA, with aspiration to reach 1.5% in 18 months.
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Guidance and risk preview
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.
Rising cost of deposits and tight liquidity could compress NIMs, though management aims to protect ROA through other income and efficiency.
View Risks →