10 February 2020 PAT increased 25% YoY to INR697m (2% beat) in 3QFY20. While NII was largely in line with our estimate, higher opex (7% miss) was offset by lower provisioning (11% beat), leading to largely in-line PAT. Reported spreads improved 20bp QoQ/YoY to 3.3%, while the GNPL ratio was sequentially stable at 4.2%. Buy with a target price of INR390. Disbursements were down 11% YoY at INR6.6b due to a similar decline in both home loan and LAP disbursements. ~56% of the book (+6% YoY). Loan growth in Maharashtra (third largest state) also slowed down from 23% YoY in 2QFY20 to 17% YoY in 3QFY20. Reported spreads improved 20bp QoQ/YoY to 3.3%, driven by better yield and stable cost of funds. PCR increased by 100bp QoQ to 29%. While issues of sand mining and property registration in TN have been resolved, overall housing demand remains weak.