Apprehensions on asset quality (after the slew of defaults and downgrades over FY19) are mostly in the price. IIB has significantly lagged larger PVT peers during FY19. The (1) Reduction in the exposure to potentially stressed cos, and (2) Further contraction in SMA I & II provides mild reinforcement to our positive stance, which is founded on the strength of IIB's core metrics and execution capabilities. We are upbeat on the multi-pronged opportunities that the BHAFIN merger opens up. Management's comfort with low coverage is disappointing. Also, succession is a key monitorable. After a blip in 4Q, IIB is back on track with stable asset quality and a dip in exposure to stressed cos. In-line operating metrics and the sharp dip in provisions (72% QoQ) drove up net earnings (2.1x). Maintain BUY with a TP of Rs 2,011 (3.5x Jun-21 ABV of Rs 575).