SBIN's 4QFY18 loss of INR 77.2bn marks large cleanup of balance sheet with a) Non-NPL stressed loans declining to just 1.9% of loans, b) 180 bps increase in provision cover on a QoQ basis to 50.4%. Moreover, management has indicated that this new watchlist subsumes all ex-NPL stress on the loan book, and includes all corporate SMA2 loans as well as some SMA1 loans. This should provide comfort on the expected decline in slippages for FY19. We continue to build INR 549bn of credit cost over FY19E, of which 74% is routed through P&L; and the rest through direct haircuts on book value (Exhibit 6). Although management guides for RoA of 0.9%-1% by FY20E, we conservatively build RoA of 0.75% by FY20E. We believe...