Improvement in asset quality was the key positive in the quarter. This was also reflected in volume terms, with the number of NPL contracts down ~30% QoQ. However, MMFS lowered its PCR on Stage 3 GNPLs to 19% from 27% in the prior quarter, which Over the past six quarters, MMFS has witnessed a significant improvement on most parameters AUM growth, margins and asset quality. The company has been gaining market share across all existing products and has expanded into newer products like pre-owned vehicles and CV/CE. NPLs have declined to a multi-quarter low. With strong AUM growth, improved branch productivity and low credit costs, MMFS is likely to maintain 2.5% RoA/16% RoE over the medium term, in our view. Value of assets financed for SMEs declined sharply from INR18b to INR1b, while that in vehicle finance increased 16% YoY to INR116b.