Axis Bank accelerated the recognition of stressed assets in 4QFY18 driven by RBI's revised stressed asset guidelines. Consequently, slippages jumped to ~Rs163bn (slippage ratio of 4.2%, NOT annualized). Net Non-NPL stress pool of the bank thus reduced sharply to 2.7% of loans, as against 4.5% in 3QFY18. We see this as a positive move despite the near-term negative impact on P&L; (loss of INR 21.9bn in 4QFY18). Management has sounded confident that NPL recognition is nearly complete and should reach its logical end by 1HFY19. We were earlier building in provisions of INR 270bn over 4QFY18-FY20E for the bank and we continue to expect similar overall provisioning requirement, with INR 200 bn pending over...