Post steady asset quality in the previous three quarters, higher slippages disappointed at | 235 crore in Q1FY7. In Q1FY17, three loan accounts with aggregate exposure of | 235 crore slipped into NPA. Consequently, GNPA increased from | 293.7 crore in Q4FY16 to | 528.9 crore. GNPA ratio, therefore, rose 2.43% QoQ at 5.83% • PAT came in at | 67.4 crore, broadly in line with our estimate, owing to lower NII at | 99.4 crore, offset by lower provision at | 2.2 crore.

Valuation: They revise their target multiple downwards at 1.1x FY18E ABV (earlier 1.15x) at | 33.8. Consequently, they revise target price lower from | 43 to | 37 per share and, hence, maintain our HOLD rating on the stock.