Equitas (EQUITAS) reported a loss of INR300m, as the bank chose to provide completely on its delinquent micro finance (MF) book, increasing the coverage ratio on the latter to 96%. PPoP declined 7% QoQ, as total income (INR2.7b) growth of 4% QoQ lagged opex growth of 6% QoQ (INR2.3b). The bank provided a total of INR869m during the quarter (INR700m toward MF book), effectively up-fronting all credit costs on the same. Balance sheet de-risking continues:In line with the goal of diversifying the loan book, micro finance AUMs fell to 32% of total v/s 36% in 2QFY18, as MF AUM declined 6.6% QoQ to INR24.7b, while vehicle finance and M-LAP/LAP AUMs grew 4.2% and 11.5% QoQ, respectively. Total AUM/loan book grew 7.5%/22.2% YoY (securitized book share fell to 6.8%). Unsecured AUMs fell to 36% v/s 39% in 2Q, with robust growth in secured lending products.