Fedbank Financial Services Ltd

Fedbank Financial Services Limited reported Q2 FY27 results with total disbursements growing 28% YoY to INR6,676 crores and AUM increasing 37% YoY to INR22,035 crores. Gold loan disbursements rose 31% YoY to INR5,822 crores, with AUM up 77% YoY to INR11,917 crores. The company opened 74 new branches, expanding to Eastern India, and maintained a 68% LTV ratio. Mortgage disbursements grew 12% YoY to INR855 crores, with AUM up 13.5% YoY. Credit costs were INR27 crores (0.6% of average total assets), within the guided range below 1%. Profit after tax reached INR130.8 crores, a 63% YoY increase, with ROA at 2.8% and ROE at 17%. GNPA stood at 1.8%, up from 1.6% in Q1, attributed to gold loan lending transitions. The company emphasized resilience in profitability, asset quality, and operational efficiency, with plans to expand branches in H2 and maintain focus on growth and cost management. Management discussed competitive pressures in gold loans and small ticket LAP, noting strategies to balance yield, growth, and LTV. Guidance for AUM growth of 20-25% and ROA of 3% was reiterated, with confidence in maintaining performance despite market challenges.

The document highlights strong growth in disbursements, AUM, and profitability metrics, along with improved asset quality and strategic expansion, indicating a positive outlook.