CUB's Q1FY16 results were above estimates as the earnings grew by 12.2% YoY (12.6% QoQ) to Rs 1,116 mn led by strong growth in NII, lower employee and provision expenses. NII grew by 19.8% YoY (9.3% QoQ) led by higher NIMs of 3.59% whereas advances growth stood at 10.8% YoY (-1% QoQ). Asset quality deteriorated as GNPA increased by 10 bps to 2% whereas NNPA remained stable at 1.32%. Slippages were lower at Rs 780 mn vs Rs 1.1 bn in Q4FY15.