ICICIBCs 1Q results were below expectations with asset quality issues continuing to hit performance. Slippages were elevated at 7.5% ann., with the only solace that 71% was from the watch-list (Rs 45.6bn) and the restructured book (Rs 13.2bn). Higher slippages rubbed off negatively on margins (down 21bps QoQ) with consequent interest reversals. Headline GNPAs were optically stable, aided by sale to ARCs and write-offs.