As structural changes become more entrenched at the bank (retail loans are ~61% of book, improving corporate asset quality), ICICIBC's reported financials will improve and stabilise. It is the cheapest large PVT bank. Continuous stability/improvement in core parameters underpin our thesis of its trajectory towards normalised earnings/RoAAs. The recent slew of defaults and weakening macros pose some risk on this path. ICICIBCs 1QFY20 show was mildly ahead of estimates. Our healing thesis is mostly playing out (slippages and credit costs continue to moderate, coverage is now best-in class). Maintain BUY with an SOTP of Rs 492 (2.0x Jun-21E core ABV of Rs 189 and sub-value of Rs 113).