25 January 2020 DCBB reported in-line 3QFY20 operating performance, while higher provisions dragged earnings growth (5% miss), led by greater stress in a few business segments. Loan growth moderated further on continued sluggishness in the corporate banking portfolio. Maintain DCBB reported PAT of INR967m (5% miss), impacted by lower treasury gains and higher provisions (36% QoQ increase). NII growth slowed to 10% YoY to INR3.2b (in-line) due to moderation in loan growth (11% YoY) while margins improved 4bp QoQ to 3.71%, aided by reduction in cost of deposits. Other income declined 1.5% YoY (8% QoQ decline), mainly led by muted treasury gains of INR70m (72% QoQ decline), while core fee growth was also subdued at 5% YoY. Loan growth moderated further to 11% YoY, primarily led by continued sluggishness in the corporate banking portfolio; it now forms 12% of the book (v/s 15% in 3QFY19).