Thread by @Abhishe27960014

6 Key Takeaways of Federal Bank Result in this🧵

1) Federal Bank is one of the top banks when it comes to people sending money from their foreign bank account to an Indian bank account, they have a big market share of 20.36%. ⬇️

#FederalBank

2) Banks make money by charging more interest on loans they give out than the interest they pay to people who save their money in the banks.

Interest income is an important number for a bank to look at.

Federal Bank made 27% more money from interest income compared to last yr.

3) Net Profit grew up by whopping 54% to approx. 803 crores in Q3.

4) When a bank lends more money to customers, the bank has better chance to make more money.

Federal Bank loaned 15% more money to customers this time, which is good for the bank's business.

5) Banks use a metric called NPA to track unpaid loans. A lower NPA indicates that the bank is more successful in recovering money from borrowers.

Federal Bank's NPA ratio is currently at 2.43%, the lowest it's been in the last 21 quarters.

Despite Federal Bank's low NPA ratio of 2.43%, Federal Bank lags behind HDFC Bank, which boasts an even lower NPA ratio of 1.23%.

6) Federal Bank's CASA ratio stands at 34%, showing a significant increase of 7% YoY, although it still lags behind HDFC Bank's CASA ratio of 44%