19 May 2020 BAFs 4QFY20 PAT declined 19% YoY to INR9.5b (28% miss due to provisions). Better-than-expected margin performance led to PPOP (+46% YoY) beat of 5%. Accelerated charges for two large NPL accounts, the recalibration of its ECL model, and COVID-19 provisions (on std. assets) of INR14.2b were reported during the quarter. At April end, 27% of the consol. AUM was under moratorium, with a ~35% bounce rate, by volume (37% in May). The company remains comfortably placed on liquidity, with cash and bank balance of INR209b (~19% of May). As of April, consolidated AUM declined 2.5% month on month to INR1.43T (no lending in B2B / Auto Finance). The company has a granular and high-churn Retail/SME portfolio. 37% of loans mature within a year. The business model relies significantly on the addition of new customers and good macros for cross-selling to existing customers.