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• We are factoring muted growth in advances at 19.5% YoY as disbursements have been lower than we expected.
• We are factoring a ~10bps improvement in margins due to higher CASA growth and 25bps increase in BPLR.
• Slippages are expected to be sequentially lower as most of the pain has already been felt in last few quarters. We are factoring fresh slippages at `5.3bn in 2QFY11 vs `6.2bn in 1QFY11.
• We expect credit costs at 0.64% in 2QFY11 vs 0.71% in 1QFY11 as we are expecting slippages to be lower, which will lead to decline in provision charges. We are factoring provision charges at `3.63bn vs `3.86bn in 1QFY11.
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