Asset quality remained largely stable as Gross non-performing asset (NPA) ratio improved by 5 bps sequentially to 1.1%. Gross NPA ratio in corporate segment declined by 14 bps QoQ to 2.2% while in individual loans it stayed steady QoQ at 0.7%. Notably, HDFC has a miniscule exposure to IL&FS; (Rs400cr) and it is also in the form of lease rental discounting. We expect overall asset quality in its developer loan portfolio to remain stable in the medium term despite a weak market condition. Further, given HDFC's conservative lending policy along with 100%+ provision coverage ratio (PCR), we remain relatively comfortable on overall asset quality profile of the company and expect Gross NPA ratio to...