Rekha Jhunjhunwala portfolio: Federal Bank shares have been in uptrend after bottoming out in June 2023. This Rekha Jhunjhunwala share has risen from around ₹120 to ₹150 apiece levels, deliering to the tune of 25 per cent return to its shareholders in last four months. However, it seems that Federal Bank shares still possess some steam. This Rekha Jhunjhunwala portfolio stock today opened upsde and inch close to its life-time high of ₹152.30 apiece on NSE, which it has made recently. the south Indian bank is going to declare its Q2 results today.
On account of steady growth in loans and deposits, and improvement in asset quality, market is expecting strong Q2 numbers from the south Indian bank. However, due to rise in cost of funding, margins of the Federal Bank may come under pressure. However, the private lender is expected to mainmtain better NIMs in comparison to its PSU counterparts.
In Q1FY24, Federal Bank reported a net profit of ₹853.74 crore for the first quarter of FY24, registering a strong growth of 42.2% from ₹600.66 crore in the corresponding period last year. The south Indian bank’s net interest income (NII) in Q1FY24 rose 19.6% to ₹1,918 crore from ₹1,604.5 crore, YoY. Net interest margin (NIM) contracted marginally by 7 basis points to 3.15% from 3.22% in the June quarter last year.
On the asset quality front, the Federal Bank's gross non-performing assets (GNPA) in the June quarter increased 6% to ₹4,434.8 crore from ₹4,183.8 crore in the March quarter. Net NPA rose by 5.8% to ₹1,274.6 crore from ₹1,205 crore, QoQ.
As per the latest shareholding pattern of Federal Bank available on BSE website (11th October 2023), Rekha Jhunjhunwala holds 7,27,13,440 Federal Bank shares, which is 3.03 per cent of total paid up capital of the private lender.
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