1. Home >
  2. Export Import News >
  3. Foreign Exchange >
  4. Q2: Strong fee growth springs a surprise >
  5. Q2: Strong fee growth springs a surprise

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Q2: Strong fee growth springs a surprise.

Date: 22-10-2018
Subject: Q2: Strong fee growth springs a surprise
Federal Bank reported profit of Rs 2.66 bn in Q2FY19 (flat y-o-y, 2.7% above JMFe). While NII was broadly in-line with our estimates, a strong performance on core fees (34% y-o-y) resulted in a PPoP beat of 19%. Provisions for the quarter were, however, elevated (specific credit cost at 0.9%) as gross slippages came at 2.1%. Slippages (`4.8 bn) were elevated on account of the floods in Kerala (c.10% of slippage). Management disclosed that FB has an overall exposure of c.Rs 2 bn to the IL&FS Group (0.2% of loans), spread across 3 operational projects, where it does not expect significant stress. Management expects slippages on account of Kerala floods to be contained at Rs 1.5 bn in FY19. We now build slippages of Rs 15.4 bn (1.7% delinquency) in FY19, resulting in a cut in our PAT estimates by 3.4% for FY19. We believe FB can deliver RoA/RoE of 1/13% in FY20e.

Strong core fee growth drives PPoP: FB posted 14% y-o-y NII growth, as NIM expanded marginally to 3.15% and loan growth was strong (+25% y-o-y). Core fees growth (34% y-o-y) was driven by strong growth in loan processing charges (51% y-o-y) and forex income (49% y-o-y). Cost-to-income fell sharply on account of outperformance in fees (down 365bps q-o-q to 48%), as opex growth was flattish q-o-q. Management expects NIMs to further expand to 3.2% by Q4FY19 driven by lower interest reversals and better asset mix. We build 3.1/3.15% NIMs over FY19/20e.

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 27-05-2020
Notification No. 9/2020-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of 'Electronic Calculators of all types excluding calculators with attached printers, commonly referred to as printing calculators; calculators with ability to plot charts and graphs, commonly referred to as graphing calculators; programmable calculators',originating in, or exported from, People's Republic of China for a period of five years, in pursuance of final findings of sunset review investigations issued by DGTR and in supersession of the notification No. 24/2015- Customs (ADD), dated the 29th May, 2015.

Date: 22-05-2020
Notification No. 47/2020-CUSTOMS (N.T.)
Appointment of CAA in case of in case of M/s Satnam Steels, Rajkot.

Date: 22-05-2020
PUBLIC NOTICE No. 06/2015-2020
Inclusion of Gopalpur Port, Odisha as a Port of Registration under Para 4.37 of Handbook of Procedures, 2015-2020.

Date: 22-05-2020
TRADE NOTICE NO. 12/2020-2021
Issuance of Preferential Certificate of Origin for India’s exports to Thailand and Vietnam under ASEAN-India FTA

Date: 21-05-2020
Notification No. 24/2020 - Customs
Seeks to amend notification No. 56/2000-Customs dated 05.05.2000, No. 57/2000-Customs dated 08.05.2000 and No. 40/2015-Customs dated 21.07.2015 providing for extension of last date of export by six months, for those cases where the last date of export falls between 01.2.2020 and 31.7.2020 due to the outbreak of COVID-19 pandemic.

Date: 21-05-2020
Notification No. 25/2020 - Customs
Inclusion of Gopalpur Port [INGPR1] as notified port for getting benefits under AA/ EPCG schemes and other export incentive schemes like MEIS/SEIS and other such schemes.

Date: 21-05-2020
Notification No.46/2020 - Customs (N.T.)
Exchange Rates Notification No.46/2020-Custom (NT) dated 21.05.2020.

Date: 21-05-2020
Notification No.10/2020-Customs (ADD)
Seeks to amend notification No. 27/2015-Customs (ADD) dated 1st June, 2015 to extend the levy of Anti-Dumping duty on acrylic fibres originating in or exported from Thailand for a further period of 6 months.

Date: 20-05-2020
Instruction No. 06/2020-Customs
Instruction Number 06 - Customs on Requirement of Veterinary Certificate

Date: 19-05-2020
Notification No. 45/2020-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg.

Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001