Federal Bank shares rise by 4% post Q1 update

Shares of Federal Bank gained almost 4% to touch its 52-week high level today, a day after the private bank disclosed its quarterly updates. The rise in Federal Bank shares were in sync with NIFTY BANK index, comprising the top 12 liquid and large-cap stocks from the banking sector, which was up by 1.80%.

Most of private lender shares such as Axis Bank, Kotak Mahindra Bank, ICICI Bank, IndusInd Bank rose in the range of 1-3%.  HDFC Bank, the most weighted stock on Nifty50, topped the gainers’ chart by rising as much as 3.54% to hit a 52-week high of ₹1,791.90 on the BSE, driven by growing optimism that its weight in the MSCI Global Standard Index could increase.    

At the time of reporting, Federal Bank’s shares were trading at ₹181.40, up 3.65%. The stock touched the 52-week high of ₹183.30 during the session. The stock touched its 52-week low of ₹126.45 today.    

In a regulatory filing, Federal bank informed that its total deposits reached ₹2,66,082 crore, with a year-on-year growth of 19.6%. The bank had an aggregate stock of ₹2,51,991 crore as total customer deposits excluding the interbank deposits and certificates of deposits seeing a year-on-year growth of 19.8% since June 30, 2023. The bank’s gross advances grew by 20.1% from ₹ 1,86,593 crore to ₹ 2,24,139 crore.

The company also shared that its retail credit book which accounts for 56% of its credit sales grew by 25% while its wholesale credit book which makes up for the remaining 44% of its sales grew by 14%. The bank’s CASA ratio (current and savings account ratio) reduced to 29.28% from 31.85% in June last year signalling that the hike in total deposits is not mainly from increased current and savings accounts.

This year Federal Bank has launched several initiatives which include introducing Gen-AI search functionality to the website, NCMC-integrated Debit cards with a tap and pay functionality, and even unveiled its sixth Federal Academy in Chennai.