Asset quality healing and earnings improvement at AXSB have been admittedly slower than expected, however the broader trajectory remains unchanged. Largely stable NPLs and a reduction in std. stress point to this. Our constructive stance remains premised on the leadership and strategic changes at the bank, better underwriting and a healthy B/S (CRAR at 18.7% and PCR at ~59% calc.). We continue to see a steady climb in RoAAs, in spite of our conservative estimates (17% loan CAGR, ~2.8% slippages and 1.7% LLPs). Maintain BUY. AXSBs 3Q operating performance was in-line with estimates. Elevated LLPs continued, and exceeded our estimates, consequently, PAT was ~17% below expectations. While asset quality was largely stable in spite of higher slippages, the BB and below rated loan pool dipped ~18% QoQ. Maintain BUY with a TP of Rs 988(2.75x Dec-21E ABV of Rs 350 + Rs 27 for subs)