HDFC Bank' profitability impacted by contingent provisions (Rs.15.5bn) related to Covid-19 impact. However, asset quality remains stable (GNPA 1.36% vs 1.42% QoQ) if adjusted for moratorium benefits which is the key positive which needs to be watch out for. PAT grew by 17% YoY due to lower effective tax rate (25% vs 34% YoY) as PBT grew by 3% YoY. NII grew modestly by 16% YoY against a loan growth of 21% YoY due to a decline in its margins. PPoP grew by 20% YoY as cost to income rate improved (39% vs 39.6% YoY); fee income growth slowed to 14% YoY (23% YoY Q3FY20) as bank lost Rs.3.5bn on account of Covid-19. We believe that HDFCB would see amongst the...