Upgrade to BUY. Revise the TP to Rs 675. (2.2x Sept-19 ABV) LICHFs 2Q results came in below expectations, owing to pressure on yields, as NIM further declined 12bps QoQ (30bps YoY) to 2.38%. The loan book was better at 3%/15.5% QoQ/YoY. GNPAs shot up QoQ from 0.72% to 0.8%, owing to higher NPAs in the developers book. NIM pressure was largely owing to yield pressure on advances, which declined 29bps. NII declined almost 5.3% QoQ (up 2.5% YOY) to Rs 9.4bn. Disbursement growth remained strong at 20% YoY, driven by the developers loan book growth at 65.8%. PAT moved 4.1%/-1.1% QoQ/YoY to Rs 4.9bn. Operating cost was stable.