CUB's Q2FY16 results were in- line with estimates as the earnings grew by 15% YoY (-3.3% QoQ) to Rs 1,079 mn led by strong growth in NII however higher tax rate impacted earnings growth. NII grew by 16.4% YoY (7.4% QoQ) led by higher NIMs of 3.74% whereas advances growth stood at 12.1% YoY (4.9% QoQ). Asset quality deteriorated as GNPA and NNPA increased by 10 bps and 4 bps to 2.1% and 1.36% respectively.