Despite higher-than-estimated PAT at INR 159.8bn (4% beat), HDFCB’s Q2FY24 results were a tad softer, as NIM (at 3.4% of total assets) was weaker-than-expected (NII miss at ~6%). While NIMs are likely to have bottomed out in Q2, we are building in only a gradual rise due to heightened competitive intensity and calibrated absorption of liquidity.