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Federal Bank Q1 results preview: Key things to watch out for

Federal Bank will report its first-quarter earnings on Tuesday and analysts expect the lender to report muted earnings this time around.

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By Abhishek Kothari  Jul 16, 2019 8:39:52 AM IST (Published)

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Federal Bank will report its first-quarter earnings on Tuesday and analysts expect the lender to report muted earnings this time around.

  • The street is expecting a muted quarter this time for Federal Bank given the fact that that loan growth is expected to be on the lower side.
  • The key things to watch will be the improvement in net interest margin (NIM), which stood at 3.17 percent last quarter.
  • The loan growth, which had been averaging around 24-25 percent, fell to around 20 percent last quarter. So if it sustains over there, it will be positive and anything below that will be negative.
  • One should remember that in the previous quarter for the first time RoA of Federal Bank had crossed 1 percent. So sustaining that will be a key thing to watch.
  • The movement in asset quality will be seen very closely. Last quarter, the gross non-performing asset (NPA) was at 2.92 percent.
  • CNBC-TV18’s poll suggests net interest income (NII) growth of close to 16 percent while net profit can grow by 36.5 percent. However, on a sequential basis, the analysts are expecting a decline in net profits by 6 percent.
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