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.