Improving Prospects; Challenges on NIM and PCR Remain Despite weak growth trends and higher corporate slippages, Federal Bank reported 32% YoY growth in PAT 3QFY20, partly benefitting from lower tax rates even as PBT was in-line with expectations. Annualised slippages at 2.2% was mainly led by higher corporate slippages. However, GNPA ratios declined by 8bps QoQ to 3.0% owing to higher write-offs. Loan growth moderated to 13% YoY against 15% in 2QFY20. Growth would have been ~15%, after adjusting for corporate slippages/loan settlements. Growth in fee income moderated to 11% YoY led by decline in TP distribution fee and forex gains over previous year. Margins at 3% continued to...