Federal Bank's first quarter results suggest strength in SME business

Federal Bank, with a 40 per cent concentration in retail loans and loans to small and medium enterprises (SMEs), is often seen as good indicator of demand from these segments, particularly in South India.

With 18 per cent growth in net interest income (Rs 1,154 crore) and 46 per cent net profit growth year-on-year (YoY) to Rs 384 crore, the numbers suggest there is little cause for worry. Also, with retail and SME loans growing by 26 and 12 per cent, respectively, in the first quarter (Q1), and the overall loan book up by 19 per cent YoY, investors