InvestorQ : Can I look to buy Federal Bank stock after the latest results showed good growth in the net profits? Is it better than other private banks?
indhumathi Sayani made post

Can I look to buy Federal Bank stock after the latest results showed good growth in the net profits? Is it better than other private banks?

Answer
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shrinidhi Rajan answered.
1 year ago


In the latest June quarter, Federal Bank did report a 46% growth in net profits to Rs.384 crore. This was supported by an 18% increase in net interest income (NII). However, the company has seen a rise in its NPAs and also its gross slippages during the quarter. In fact, the slippages are up from Rs.256 crore to Rs.415 crore and even the gross NPAs has not come close to 3%. The company also has a strong SME portfolio has been under stress. If you are looking at private banks, then banks like Kotak Bank or RBL banks may be better as they have better control over asset quality and have better growth prospects.