One off provisions cause Q1 profit miss; retain estimates Additional ageing provisions of Rs920mn on an already recognized corporate NPA caused LICHF's Q1FY17 provisions to balloon 2.6x YoY to Rs1.16bn causing LICHF to miss profit estimates by ~9.8%. But for the one-off provisions, LICHF's Q1FY17 provisions could have declined ~35% QoQ and ~45% YoY and the net profit could have beaten estimates by 3.5%. Nevertheless, the said NPA (under LICHF possession) is now fully provided for with management optimistic about recoveries once the recovery process culminates. In our recent initiation report on LICHF, we had expressed confidence on LICHF's asset quality while...