CANF's PAT declined 6% QoQ/12% YoY to INR1.16b (9% miss) in 3QFY22. Despite an in-line PPOP of INR1.72b (up 6% QoQ/down 4% YoY), the PAT miss was led by higher-than-estimated credit costs of ~27bp (v/s 3bp YoY). GNPA/NNPA decreased 7bp/8bp QoQ to 0.71%/0.39%, respectively, with PCR increasing ~5% QoQ to ~45%. Credit costs stood at INR164m in 3QFY22. This was primarily attributable to standard provisions on loans disbursed in 3Q and the remainder on increasing coverage of ageing NPA loans. CANF is our favored play among small housing financiers, given that it has...