22 October 2019 2QFY20 PBT came in at INR8.6b (10% miss) due to higher-than-expected credit costs. first time in several quarters, the share of home loans increased sequentially (+30bp to 76.5%). provisions were largely stable at 43%. Spreads increased ~5bp QoQ to 1.4%. The share of floating rate loans declined from 93% to 82% sequentially as the company introduced a fixed- to-floating rate product. Opex grew 36% YoY to INR1.4b 20% above estimates driven by a sharp increase in employee expenses and commissions paid. While operating performance of the company has been steady, the continued increase in the GNPL ratio is concerning. Individual GNPL ratio has increased from 40bp to 150bp over the past two years.