Karur Vysya Bank (KVB) disappointed as profitability declined (PAT down 48/49% YoY/QoQ to Rs 75cr) on credit costs (+2%) remaining elevated in Q2FY18. Asset quality deteriorated with G/NNPAs up 53/39bps sequentially to 4.8/3.2%. Slippages stood at Rs 426 cr (4% annualized; 3.8% in Q1FY18).