13 November 2019 2QFY20 PBT increased 41% YoY to INR10.5b, driven by one-off strong GNPL recoveries, which led to income of INR2b. Excluding this one-time income, PBT grew 14% YoY to INR8.5b. PAT for the quarter was INR8.6b, driven by 18% tax rate. However, MUTH has raised USD450m senior notes from the international market as well as INR4.6b from retail NCDs in Oct19 hence, loan growth has resumed in 3QFY20. Excluding the INR2b income mentioned above, yields have improved 50bp QoQ to 21.7% v/s 20bp increase in CoF to 9.5%. While cost of funds may further increase due to the external borrowings, we expect the company to largely maintain spreads at 12%. Opex grew 8% YoY to INR3.97b. Company has guided for a pick-up in opex commensurate with loan growth in 2HFY20.