Federal Bank has surprised the market by delivering strong growth in profit and loan book fronts in 3QFY17. Its net profit grew by 26.4% yoy & 2.2% qoq to Rs2.1bn led by 30.8% yoy & 9% qoq growth in NII and 43.7% yoy & 0.7% qoq growth in other income. Provisioning expenses saw marginal qoq decline due to lower growth in incremental GNP formation. Resultantly, its PAT grew by 26.4% & 2.2% qoq to Rs2.1bn in 3QFY17. It showed greater resilience on asset quality front with its gross and net NPAs remaining within the Management's comfort zone. Fresh slippages stood at Rs2.7bn in 3QFY17 from Rs3.9bn in 3QFY16. We expect the Bank will be...