SBIN's 3Q is not extraordinary if earnings are adjusted for the impact of the large recoveries (recoveries nevertheless). These were on expected lines. Standard exposure to vulnerable sectors remains a source of potential stress. However, we expect the extent of incremental stress to be considerably lower than before. Calc. PCR at ~64%, will enable a reduction in LLPs and hence improvement in RoAEs. This, along with undemanding valuations underpins our stance. SBINs 3Q earnings were significantly ahead of estimates as recoveries boosted core earnings and contributed to a reduction in provisions. Adjusted for this, the qtr was par for the course. Maintain BUY with an SoTP of Rs 418 (1.3x Dec-21E of ABV of Rs 241 + Rs 105 sub value).