The government’s focus coupled with housing shortage leads to opportunity for balance sheet growth. High provision coverage at ~89% and healthy capital adequacy provides comfort. However, exposure to private sector and anticipated slippages from thereon remains a concern which could impact earnings and thereby return ratios. Currently, the stock is trading at ~0.75x FY19 BV. Factoring in slippage of Rs 1200 crore from the private sector, the stock is trading at ~0.85x FY19 ABV. Consequently, we revise our target price to | 45 per share (earlier Rs 112-123), valuing the stock at ~0.9x FY19 ABV (adjusting for Rs 1200 crore). Accordingly, we downgrade the stock to HOLD.