In Q1FY21 HDFC Bank's GNPA increased sequentially by 10bps to 1.36% with slippage ratio at 1.2%. 9% book under moratorium seems to be the lowest in the industry which needs to be watch out for asset quality pressures in H2FY21. Profitability impacted by contingent provisions (Rs.10bn) related to Covid-19 impact. PAT grew by 20% YoY due to lower effective tax rate (25.5% vs 35% YoY) as PBT grew by 5% YoY. NII grew modestly by 18% YoY against a loan growth of 21% YoY due to a decline in its margins. PPoP grew by 15% YoY as cost to income ratio improved (35% vs 39% YoY); fee income declined by 37% YoY as bank lost Rs.20bn on account of Covid-19. We believe that...