Federal Bank (FB) recorded PPoP growth of 5%/7% QoQ/YoY (to INR5.9b; 10% miss), as 7% beat on other income (+37%/+11% QoQ/YoY to INR3.1b) was offset by 6% miss on opex (+7%/+15% QoQ/YoY to INR6.6b) due to additional INR179m of gratuity provisions. Core PPoP growth was healthy at 6%/14% QoQ/YoY. Elevated provisions at INR3.7b (driven by high slippages) led to PAT of INR1.45b. NII growth came in at -2%/+11% QoQ/YoY (5% miss), as NIM shrunk to 3.11% (-22bp QoQ), driven by a 41bp QoQ decline in yield on advances.