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.