India's Federal Bank falls on moderation in deposit growth

Federal Bank

07/10/2024 08:15

** Shares of Federal Bank  FED.NS  fall 3.3%
    ** Stock set for its worst intraday percentage drop in a
month
    ** Lender's overall deposit growth moderated to 1%
sequentially in the September quarter, from 5% in the last
quarter
    ** Loan-to-deposit ratio (LDR) inched up to 86.9% from 84.3%
in the previous quarter
    ** Morgan Stanley flags higher LDR and slower growth in
retail deposits as key concerns
    ** Elara Capital expects the lender's net interest income
(NII) to be hurt in the September quarter due to 4-5 basis point
drop in net interest margins (NIM) 
    ** The average recommendation of 30 analysts tracking FED is
"buy"; median price target is at 230 rupees - LSEG data
    ** FED shares have gained 20% in 2024 so far, compared to 6%
rise in bank index  .NSEBANK  of which it is a constituent

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))