As a result, credit cost is expected to remain elevated but would be driven more by the retail segment than wholesale. Having witnessed significant asset quality challenges, FY20 ROE was 5.6%. Given the near-term outlook, ROE recovery will be delayed. Per se, on the key P&L items, RBL posted 38% YoY NII growth at Rs10,210mn, PPOP growth of 37% YoY at Rs7,649mn and PAT decline of 54% YoY at Rs1,144mn. NII/PPOP were 9%/12% above our estimates while PAT was 60% below our estimate. We revise our FY21/FY22 estimates downward and forecast a lower ROE of 4.9-9.7% over the medium term. Our NII and PPOP revisions are, to some extent, cushioned by a higher NIM (despite weak loan growth) and lower opex growth. Our PAT revision is driven by high credit cost in anticipation of increased stress levels. We maintain BUY on RBL, revising our target price to Rs188 (from Rs243 earlier) and valuing the stock at 0.9x FY22E P/BV.