Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Equity Bottom-Up

<ul>
<li>Federal Bank delivered record net interest income (NII) and fee income in Q2 FY26, while net profit fell ~9½ % YoY. </li>
<li>Core earnings momentum is intact—CASA growth, margin uptick, asset quality improving—but elevated provisions and subdued credit growth raise questions on earnings durability.</li>
<li>He bank is executing on key levers, but investors need clarity on the earnings runway and capital/deposit growth ahead—read on for the deeper dive.</li>
</ul>


Federal Bank delivered record net interest income (NII) and fee income in Q2 FY26, while net profit fell ~9½ % YoY. 
Core earnings momentum is intact—CASA growth, margin uptick, asset quality improving—but elevated provisions and subdued credit growth raise questions on earnings durability.
He bank is executing on key levers, but investors need clarity on the earnings runway and capital/deposit growth ahead—read on for the deeper dive.


Federal Bank Q2 FY26: Strong Operational Beat, RoA Strategy On Track - But Is the Re-Rating Done

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>NIMs Surprise; Improving Trajectory from Hereon: FB’s NIMs surprised, expanding by 12 bps, led by sharper improvement in CoD/CoF against yield compression, CRR cut aiding margins by 1 bps, and optimisation of other assets and liabilities by ~2 bps.</li><li>NIMs also benefited as the bank’s advances repriced on a T+1 basis, and a larger hit was taken in Q1.</li><li>The management continues to prioritise NIM improvement through (a) Rebalancing the asset mix; (b) Shifting away from repo-linked loans (mix down to 49% vs ~50–52% YoY); (c) Realigning the liability mix with focus on CASA deposits, primarily CA deposits. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NIMs Surprise; Improving Trajectory from Hereon: FB’s NIMs surprised, expanding by 12 bps, led by sharper improvement in CoD/CoF against yield compression, CRR cut aiding margins by 1 bps, and optimisation of other assets and liabilities by ~2 bps.NIMs also benefited as the bank’s advances repriced on a T+1 basis, and a larger hit was taken in Q1.The management continues to prioritise NIM improvement through (a) Rebalancing the asset mix; (b) Shifting away from repo-linked loans (mix down to 49% vs ~50–52% YoY); (c) Realigning the liability mix with focus on CASA deposits, primarily CA deposits. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Federal Bank Ltd. - On Track to Scale RoA to ~1.4% by FY28...

Thematic (Sector/Industry)

<ul><li>Stock investment endeavours to deliver consistent outperformance in the long term by making a diversified investment of ‘Winners’.</li><li>Axis Intellect (AI) Score based Investment Approach for Stock Selection applies unique approach to deliver alpha by applying equal exposure to ‘Core’ and ‘Satellite’ factors.</li><li>What are ‘Core’ Factors’: Low Volatility, Value, Growth, Quality, Momentum (Equal weighted 50% exposure) What are ‘Satellite’ Factors: Factors that have historically done well in the predicted regime modelling (Remaining 50% exposure)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Stock investment endeavours to deliver consistent outperformance in the long term by making a diversified investment of ‘Winners’.Axis Intellect (AI) Score based Investment Approach for Stock Selection applies unique approach to deliver alpha by applying equal exposure to ‘Core’ and ‘Satellite’ factors.What are ‘Core’ Factors’: Low Volatility, Value, Growth, Quality, Momentum (Equal weighted 50% exposure) What are ‘Satellite’ Factors: Factors that have historically done well in the predicted regime modelling (Remaining 50% exposure)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Banks (incl. SFBs) credit growth was marginally in line with our estimates, delivering an 15/5% YoY/QoQ growth in Q4, with a recovery in corporate demand for most larger banks, along with steady demand in the retail segment (particularly LAP, Auto and Gold) and a gradual pick-up in the unsecured segments (improved disbursement momentum driving sequential advances growth).</li><li>While our coverage universe PSU banks (+16/5% YoY/QoQ) continued to deliver strong credit growth, the larger private banks (+13/4% YoY/QoQ) witnessed growth revival during the quarter.</li><li>SFBs delivered strong growth (+25/8% YoY/QoQ) as unsecured segments, particularly MFI, resumed growth, while secured segments growth remained buoyant. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Banks (incl. SFBs) credit growth was marginally in line with our estimates, delivering an 15/5% YoY/QoQ growth in Q4, with a recovery in corporate demand for most larger banks, along with steady demand in the retail segment (particularly LAP, Auto and Gold) and a gradual pick-up in the unsecured segments (improved disbursement momentum driving sequential advances growth).While our coverage universe PSU banks (+16/5% YoY/QoQ) continued to deliver strong credit growth, the larger private banks (+13/4% YoY/QoQ) witnessed growth revival during the quarter.SFBs delivered strong growth (+25/8% YoY/QoQ) as unsecured segments, particularly MFI, resumed growth, while secured segments growth remained buoyant. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Top Conviction Ideas - “Banks, Financial Services and Insurance (BFSI)”

<ul>
<li>RBI finalized ECL-based provisioning directions effective April 1, 2027, with a four-year phase-in and minimum provisioning floors across asset classes.</li>
<li>One-Time CET-1 impact of up to 120 bps for most banks, while steady-state credit costs rise structurally particularly for lenders with large unsecured retail and SMA books.</li>
<li>PSU banks and high-unsecured-retail lenders face asymmetric pressure; large private banks with strong Stage 1 books and low SMA ratios are largely insulated but nobody is fully immune.</li>
</ul>


RBI finalized ECL-based provisioning directions effective April 1, 2027, with a four-year phase-in and minimum provisioning floors across asset classes.
One-Time CET-1 impact of up to 120 bps for most banks, while steady-state credit costs rise structurally particularly for lenders with large unsecured retail and SMA books.
PSU banks and high-unsecured-retail lenders face asymmetric pressure; large private banks with strong Stage 1 books and low SMA ratios are largely insulated but nobody is fully immune.


Thematic Report: A Structural Change in Indian Bank- ECL Based Provisioning

India

Federal Bank is a major Indian private sector commercial bank offering a comprehensive suite of banking and financial services, including retail banking, wholesale banking, and treasury operations. It provides products such as savings and current accounts, loans, credit and debit cards, insurance, and wealth management. The bank is headquartered in Aluva, Kochi, Kerala, India, and was founded on April 23, 1931.

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Federal Bank (FB IN)

Federal Bank Q2 FY26: Strong Operational Beat, RoA Strategy On Track - But Is the Re-Rating Done

Federal Bank's Q2 FY26 results show strong core earnings momentum, but questions remain on earnings durability due to elevated provisions and...

Nimish Maheshwari

Federal Bank Ltd. - On Track to Scale RoA to ~1.4% by FY28...

NIMs Surprise; Improving Trajectory from Hereon: FB’s NIMs surprised, expanding by 12 bps, led by sharper improvement in CoD/CoF against yield...

Axis Direct

Axis Intellect - Aggressive

Stock investment endeavours to deliver consistent outperformance in the long term by making a diversified investment of ‘Winners’.

Axis Direct

Top Conviction Ideas - “Banks, Financial Services and Insurance (BFSI)”

While our coverage universe PSU banks (+16/5% YoY/QoQ) continued to deliver strong credit growth, the larger private banks (+13/4% YoY/QoQ)...

Axis Direct

Thematic Report: A Structural Change in Indian Bank- ECL Based Provisioning

RBI's new ECL-based provisioning guidelines will impact banks differently, with PSU and high-unsecured-retail lenders facing more pressure than...

Nimish Maheshwari

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Market Cap (USDm)

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Federal Bank Q2 FY26: Strong Operational Beat, RoA Strategy On Track - But Is the Re-Rating Done

​Federal Bank's Q2 FY26 results show strong core earnings momentum, but questions remain on earnings durability due to elevated provisions and...

Nimish Maheshwari

Federal Bank Ltd. - On Track to Scale RoA to ~1.4% by FY28...

NIMs Surprise; Improving Trajectory from Hereon: FB’s NIMs surprised, expanding by 12 bps, led by sharper improvement in CoD/CoF against yield...

Axis Direct

Axis Intellect - Aggressive

Stock investment endeavours to deliver consistent outperformance in the long term by making a diversified investment of ‘Winners’.

Axis Direct

Top Conviction Ideas - “Banks, Financial Services and Insurance (BFSI)”

While our coverage universe PSU banks (+16/5% YoY/QoQ) continued to deliver strong credit growth, the larger private banks (+13/4% YoY/QoQ)...

Axis Direct

Thematic Report: A Structural Change in Indian Bank- ECL Based Provisioning

​RBI's new ECL-based provisioning guidelines will impact banks differently, with PSU and high-unsecured-retail lenders facing more pressure than...

Nimish Maheshwari

Federal Bank's Q2 FY26 results show strong core earnings momentum, but questions remain on earnings durability due to elevated provisions and...

RBI's new ECL-based provisioning guidelines will impact banks differently, with PSU and high-unsecured-retail lenders facing more pressure than...