13 May 2020 Loan growth remains muted as KMB continues to be cautious in a weak macro environment, further aggravated by the COVID-19 crisis. On the other hand, deposit growth remains strong, with the CASA ratio scaling new heights. Moreover, the standstill benefit enabled 90dpd loans worth INR6.6b to continue as standard. Overall, operating performance stood healthy, with PPOP growing at 19% YoY, although provisions for COVID-19 affected earnings. We cut our PAT estimate for FY21/22 by 14%/8%, primarily as we factor in higher credit cost. Maintain KMB reported 10% YoY decline in 4QFY20 standalone PAT at INR12.67b, affected by higher provisions toward COVID-19 of INR6.5b @ 10% of overdue loans, against which the standstill benefit is availed. NII grew at ~17% YoY to INR35.6b, supported by stable margins at 4.72% (26bp YoY increase). Opex growth stood at 14% YoY (~2% QoQ decline) to INR23.2b.