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Federal Bank's Q2 reiterates the importance of retail, small-ticket loans

Retail and small-ticket business loans have been a key source of loan book growth, but pricing power is being put to test

Federal Bank
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Hamsini Karthik
After a hurried reaction to results and Federal Bank stock falling over five per cent on Wednesday, some recovery was visible a day later. On Thursday, as the Street got a better handle of numbers, the bank's stock recovered almost 3 per cent.

But beyond the headline numbers, Federal Bank’s September quarter (Q2) numbers have some important takeaways.

Firstly, with 24 per cent year-on-year increase in retail loans, this segment will remain the growth anchor for Federal Bank and possibly for the banking system. Growth was led by newer sub-segments such as personal and auto loans where the book grew

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