News: Federal Bank reported performance highlight for Q3FY24, wherein business momentum has witnessed marginal deceleration. Advances growth came at 18% YoY to ₹ 202475 crore (~19.5% YoY in Q2FY24). Competition on liabilities continued to remain intense with focus on term deposits and certificate of deposits. Deposits grew 19% YoY to ₹ 239591 crore, with customer deposit accretion at 18% YoY, though CASA ratio declined 54 bps QoQ and 361 bps YoY at 30.6%.
Views: Deceleration in growth momentum could keep stock price in a broad range in near term. Guidance on sustainable growth remains watchful.
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