Federal Bank Q2 PAT seen down 30% at Rs 151cr: P Lilladher

Prabhudas Lilladher has come out with its second quarter (July-September) earnings estimates for the banking sector. The brokerage house expects Federal Bank to report a 43.3 percent growth quarter-on-quarter (down 29.6 percent year-on-year) in net profit at Rs 151.4 crore.

Net-interest income of Federal Bank is expected to increase by 0.8 percent Q-o-Q (up 1.6 percent Y-o-Y) to Rs 513.8 crore, according to Prabhudas Lilladher. Prabhudas Lilladher's Report on Federal Bank: We expect around 30 percent Y-o-Y PAT contraction driven by 8 percent PPOP contraction and higher provisions (credit costs + investment depreciation). Given the recent expansion where opex growth will remain sticky and there will be weak revenue momentum, we expect cost ratios to disappoint. SME/retail asset quality continues to hold up but watchlist of Rs 3-4 billion remains in the mid/large corporate portfolio. Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.