22 January 2020 AXSB reported an in-line operating performance, but slippages stood elevated with BB and below pool driving 81% of total corporate slippages. Outstanding BB and below pool declined 18% QoQ to INR51.3b. We cut our EPS estimate for FY21/22 by 4%/5% to factor in higher opex/provisioning expenses and slight moderation in NII. AXSB reported PAT of INR17.6b (+4.5% YoY, in-line). NII increased 15% YoY to INR64.5b (in-line), led by healthy domestic loan growth and margin expansion of 6bp QoQ to 3.6%. Other income declined 5.4% YoY to INR37.9b owing to muted fee growth of 6% YoY. PPoP increased 4% YoY to INR57.4b (in-line).