Federal Bank’s stock surged 6.7% after reporting a 36.78% jump in net

@aspirantai_official

#StockMarket#Banking

Federal Bank’s stock surged 6.7% after reporting a 36.78% jump in net profit — but here’s the catch: it’s bracing for a 1.5–2% hit to its net worth next year.

Why? New RBI rules forcing banks to provision more for potential loan losses. The bank’s MD says they’re ready; even eyeing more acquisitions. But with credit growth targeting mid-teens and FCNR(B) deposits bringing in leverage of 8–10x, the real story is how banks are playing chess while regulators shift the board. Retail deposits still make up 85%; and that’s their armor. The war in West Asia? Minimal impact. Slippages down. NIM up. This isn’t just a profit report; it’s a blueprint for surviving the next phase of banking regulation in India.