26 February 2020 FB has been looking for sustainable loan growth with a strong focus on growing the retail book at 25% YoY while consciously slowing down in the wholesale segment due to the current challenging environment. It reiterated that there is no residual stress in corporate accounts above INR1b, mainly led by the higher focus on working capital loans and cash flow-based lending, which resulted in lower stress on the incremental portfolio. Further, the bank expects the mid-corporate segment to grow at a higher pace compared to large corporate lending. Federal Bank FB has reported a sharp decline in net stressed loans to ~1.6% of average assets from 3.4% in FY15. It thus expects corporate slippages to moderate significantly and cash recovery trends to remain strong. Also, retail/agri/business banking trends are improving for last few quarters, and thus NPAs in retail assets have improved to 1.8% from 2.