CMP Rs2,415, Target Rs2,424, Upside 0.4%
± Loan growth behind expectations; CASA improves while C/D ratio deteriorates
± Sharp contraction in NIM was disappointing; lower C/D ratio and material decline in spread were key culprits
± Substantial jump in core fee income; however, C/I ratio deteriorates
± Asset quality deteriorates on higher slippages; loan-loss provisioning up 100% qoq
± Capital adequacy impacted by earlier years pension liability adjustment; bank in urgent need for capital
± Downgrade to MP; cut book value estimates by 14% and target price by 25%
