Street View- India's Federal Bank seen pressured by slower loan growth despite Q4 profit rise

Federal Bank

30/04/2026 07:52

** Shares of India's Federal Bank FED.NS fall 1.07% to 281.70 rupees

** Co reported a 22.21% y/y rise in quarterly profit to 12.59 billion rupees ($132.12 million) on Wednesday

GROWTH TRAILS PEERS; ASSET-QUALITY TRENDS MIXED

** Morgan Stanley ("Equal-weight"; TP:260 rupees) says earnings were largely in line with estimates, but loan and deposit growth lagged the wider banking system even as asset quality remained stable

** JPMorgan ("Neutral"; TP:305 rupees) flags rise in slippages across retail and wholesale segments as an area of concern despite steady delivery on margins and costs

** Citi ("Neutral"; TP:290 rupees) says core NIMs and credit costs remained stable but advances growth lagged

** Kotak Institutional Equities ("Buy"; TP:335 rupees) says execution remains consistent beneath one-offs, with improving loan growth trajectory expected as portfolio realignment progresses

** Investec ("Buy"; TP:325 rupees) says healthy growth in savings and current account deposits and improving fee income supported core profitability despite credit growth still trailing

($1 = 95.2887 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru; Editing by Ronojoy Mazumdar)

 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))