Top takeaways from Q1FY17 : PAT of Rs4.2bn (below expectation) due to higher loan loss provision (Rs20bn). Strong pre?provision profit of Rs27bn (+21.2% yoy) driven by NII and treasury gain. Slippage was higher at Rs 60bn and recoveries were strong, as a result GNPA increased to 11.15% (+116bps qoq) and NNPA 5.73% (+67bps qoq). PCR remained flat at 60.2%. Slippage included Rs 12bn from small ticket loan which has emerged due to correction in system. Slippage from corporate segment was Rs13.8bn and balance contributed equally by agri, retail and SME. Slippage from restructured asset was Rs4.8bn. The total stress asset pool (GNPA + Standard restructured + SMA2) increased by Rs7.3bn qoq to Rs681bn (18.8% of loan book).Phillip Capital maintain Buy rating on the stock with PT of Rs200 (unchanged).