HDFC Bank earnings at Rs55.7bn were lower than estimates (PLe:Rs58.6bn) as strong core operating performance was utilized by the bank to undertake much higher conservative provisioning on many segments and sectors of the loan book. Business growth was slower both from retail & wholesale with some segments slowed cautiously, while some on back of slowing economy. Bank continues to deliver on most of its core operating metrics with well managed portfolio mix. With 20% CAGR earnings, 20% constant dividend payout (250% of FV special dividend announced as well) and 17% ROEs remains torch bearer for the industry and hence HDFCB remains our most preferred pick in banking universe.