Price Analysis: Federal Bank has reported 3QFY21 earnings in line with our expectations led by a) Strong NII growth (24.4% YoY) with 8bps improvement in NIMs to 3.13%, b) relatively healthy business growth with net advance and deposit growth of 5.3% YoY and 11.8% YoY respectively, c) sequentially higher C/I ratio of 49.8% v/s 46.7% in 2QFY21 and d) downtrend in reported NPA numbers with GNPA/NNPA ratio of 2.71%/0.61%. Furthermore, the bank's PAT grew by 31.4% sequentially with lower provisioning expenses (4.2bn v/s 5.9bn in the previous quarter). The Pro-forma GNPA/NNPA ratio stood at 3.38%/2.71% with PCR of 77.1%. Factoring expected 3QFY21 results and inexpensive valuation (P/BV: 1x), we maintain our positive outlook on the bank....