We remain watchful of asset quality and expect credit cost trends to remain elevated in the near term even though 4QFY20 PAT stood at ~INR5.2b (21% YoY decline, 17% below estimates), affected by higher provisions toward COVID-19 of INR6.9b. belongs to the Green zone; 16% to the Orange zone, and the rest to the The bank reported strong business growth numbers, with the mix of retail deposits improving further. 36% of borrowers have alternate businesses and therefore do not depend on a The bank has created the appropriate COVID-19 provisions based on multiple scenario analyses (such as impacted industry analysis; its prior experience of customer defaults; past events such as the Assam crisis, demonetization, and Bandhan maintains total provisions of INR10b, INR3.1b of which is put toward standard advances, while INR6.9b toward COVID-19-related issues. Total loans (on + off) grew 60.5%/9.8% YoY/QoQ to INR718.5b, driven by ~20%/15% YoY/QoQ growth in the MFI book; the non-micro credit book increased 22.3% YoY.