We expect the Bank's stressed assets and credit cost to rise significantly in 2HFY18, as divergence is likely to be much higher and in-line with other private corporate lenders i.e. Yes Bank & Axis Bank. Its stressed asset portfolio remains uncomfortable at high level of 12.4%, which is one of the highest among large private sector peers. Further, 4.1% of stressed loans are from drilldown list and standard restructured portfolios on which the Bank holds lower PCR. Its specific PCR on gross NPA portfolio also remains lower at 45.8%. Thus, we expect credit cost to remain elevated, which would keep its earnings and return ratio subdued over next 4-6 quarters. Hence, we maintain our HOLD recommendation on the stock with an unrevised...