Asset quality continued to remain under pressure as Gross non-performing assets (NPA) ratio increased by 97 bps QoQ to 8.1% in Q1FY19. However, RECL had to make incremental provisions of Rs5,800cr under IND-AS, consequently, provision coverage ratio (PCR) improved by 2685 bps QoQ to 47.4%. It also helped the company to improve Net NPA ratio by 141 bps sequentially to 4.3%. The company also provided Rs1,700cr against standard private exposure which provides further comfort. However, with ~60% of private sector marked as stress assets, we believe that the company's asset quality will improve gradually...