Federal banks (FB) results were disappointing with (a) A sharp rise in slippages to Rs 3.2bn; 2.5% ann., led by one large corporate account, (b) Net earnings at Rs 1.4bn; down ~36% YoY and 41% below estimates due to higher investment provisions of Rs 490mn and credit cost of Rs 1.2bn and (c) Muted loan growth of 10% owing to a paltry 3% growth in corporate book and a sharp 16% YoY decline in retail gold loans.