- Federal Bank‘s net income for the third quarter was 9.55 billion rupees, which is a 5.4% decrease compared to the same period last year and below the estimated 10.39 billion rupees.
- The bank’s gross non-performing assets (NPAs) improved to 1.95% from the previous quarter’s 2.09%, also better than the estimated 2.07%.
- The total amount of gross NPAs reduced by 6.8% quarter-on-quarter to 45.5 billion rupees, surpassing the estimate of 50.44 billion rupees.
- Provisions saw a significant increase of 85% quarter-on-quarter, amounting to 2.92 billion rupees.
- Operating profit increased by 9% year-on-year to 15.7 billion rupees, which is slightly higher than the estimate of 15.51 billion rupees.
- Interest income rose by 19% year-on-year, reaching 68.1 billion rupees, beating the estimated 67.78 billion rupees.
- Interest expense increased by 21% year-on-year to 43.8 billion rupees, higher than the estimate of 43.13 billion rupees.
- Other income grew by 6.1% year-on-year, totaling 9.16 billion rupees.
- Analyst recommendations include 34 buys, 5 holds, and 2 sells for Federal Bank.
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Federal Bank on Smartkarma
Analyst coverage of Federal Bank on Smartkarma by Gaudenz Schneider indicates a bullish sentiment in the research report titled “EQD | Nifty Banks – Single Stock Options and Relative Value Opportunities“. The report highlights the potential option opportunities in resilient or volatile bank stocks, with Federal Bank noted as one of the stocks to consider due to its performance during market downturns. The research suggests exploring a long-short strategy in response to the fluctuating trends in the NSE Nifty Bank Index, which hit a record high in September 2024 but has since declined.
Gaudenz Schneider‘s analysis on Smartkarma emphasizes the volatility and potential relative value opportunities within the banking sector, particularly focusing on Federal Bank‘s resilience in challenging market conditions. The report underscores the importance of considering stock options and strategic trading approaches in light of the current market movements. Investors looking for insights on navigating the dynamic banking landscape may find valuable perspectives in the detailed research provided by Gaudenz Schneider on Federal Bank and other relevant stocks.
A look at Federal Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilising the Smartkarma Smart Scores have painted a positive long-term outlook for Federal Bank. With solid scores across multiple key factors such as Value, Dividend, Growth, and Momentum, the bank has positioned itself well for future success. These scores indicate that Federal Bank is considered to be strong in terms of its financial health, growth potential, and overall market performance.
Federal Bank Limited, with its extensive network of branches and regional offices in India, offers a diverse range of financial services including merchant banking, foreign exchange, and lending for various sectors such as agriculture and technology. The bank’s high Smart Scores underscore its solid foundation and potential for sustained growth in the competitive banking sector, making it an intriguing prospect for investors seeking stability and potential returns.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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