{"id":643,"date":"2020-01-23T11:46:57","date_gmt":"2020-01-23T11:46:57","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=643"},"modified":"2020-01-23T11:50:48","modified_gmt":"2020-01-23T11:50:48","slug":"growth-is-bound-to-come-shyam-srinivasan-federal-bank","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2020\/01\/23\/growth-is-bound-to-come-shyam-srinivasan-federal-bank\/","title":{"rendered":"Growth is bound to come &#8211; Shyam Srinivasan, Federal Bank"},"content":{"rendered":"\n<p><span style=\"text-decoration: underline;\">Excerpts from an interview of Mr Shyam Srinivasan, MD &amp; CEO, Federal Bank with CNBC TV-18 dated 21-01-2020:<\/span><\/p>\n\n\n\n<p><strong>Update&nbsp;on the Indian Equity Market:<\/strong><\/p>\n\n\n\n<p>On Wednesday, NIFTY closed -0.5% lower. Among sectoral indices NIFTY Metal (-1.5%), NIFTY PVT Bank (-1.0%), NIFTY Auto (-0.9%) closed lower. While Nifty Media (1.7%), NIFTY IT (+1.0%), NIFTY FMCG (+0.02%) closed on a positive note. The biggest gainers were Zeel (+4.9%), Grasim (+2.6%), Nestle (+1.8%) whereas ONGC (-5.3%), Cola India (-5.2%) and NTPC (-3.9%) ended with losses.<\/p>\n\n\n\n<ul><li>It\nwas a weak third-quarter for Federal Bank as loan growth and net interest\nmargins came in at an all-time low.<\/li><li>Mr\nSrinivasan says, there are no significant issues except for the two housing\naccounts which are under stress. Other granular businesses are showing marked\nprogress and it will continue.<\/li><li>He\nsays they don\u2019t have a single case above 100 cr which is dodgy and therefore\nthe outlook is positive.<\/li><li>Speaking\nabout their non-corporate book, he says, their portfolio is significantly\nsecured. Banks that celebrated unsecured success over many quarters had the\ngains and now have to face some pain.<\/li><li>As\nthe portfolio is secured, between now and next 3-4 quarters, the bank does not\nexpect any large formation of stress on the secured side unless&nbsp;property\nprices get crash.<\/li><li>On\nloan growth, he says, retail is looking north of 24-25 per cent. The large\ntickets are okay, so the blended margins as the bank exit FY20 will be between\n14%- 15%.<\/li><li>The\ngold loan book is expected to grow at 25%. The bank is also gaining share in\nthe auto loan segment, particularly in Mumbai, Kerala and south.<\/li><li>Agriculture\nis seeing pain across banks due to waivers announced by various states.<\/li><li>He\nsays growth is bound to come. It cannot keep the system in paise mode. So, the\nfocus will be on getting credit cost down.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market screener and&nbsp;<a href=\"http:\/\/investing.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">investing.com<\/a>&nbsp;website)<\/p>\n\n\n\n<ul><li>The closing price\nof Federal Bank was \u20b9 93.70\/- as of 22-January-20. It traded at 1.2x \/ 1.1x \/\n1.0x the consensus Book Value for FY20E \/ 21E \/ 22E of \u20b9 73.0\/81.5\/90.6\nrespectively.<\/li><li>Consensus target\nprice of \u20b9 112\/- implies a Price to Book multiple of 1.2x on FY22E Book Value\nof \u20b9 90.6.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Excerpts from an interview of Mr Shyam Srinivasan, MD &amp; CEO, Federal Bank with CNBC TV-18 dated 21-01-2020: Update&nbsp;on the Indian Equity Market: On Wednesday, NIFTY closed -0.5% lower. Among sectoral indices NIFTY Metal (-1.5%), NIFTY PVT Bank (-1.0%), NIFTY Auto (-0.9%) closed lower. While Nifty Media (1.7%), NIFTY IT (+1.0%), NIFTY FMCG (+0.02%) closed [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,267,268],"tags":[158,270,269],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/643"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=643"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/643\/revisions"}],"predecessor-version":[{"id":645,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/643\/revisions\/645"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}