In all major perimeters Federal Bank did well, with PAT, deposits and advances growing respectively 46%, 19% and 18% y/y. However, asset quality slightly deteriorated with GNPA increasing 7bps sequentially to 2.99% and slippages came at 1.5% (of the loan book). We retain our positive view on the bank, given the strong business growth prospects, steady margins and stable credit costs. We retain our Buy recommendation, at a higher TP of 130 (earlier 115).
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