HDFC Ltd posted better-than-expected profitability on account of better than estimated topline growth. Pick-up in individual business and broadly stable asset quality were also a hallmark for the quarter. Overall asset quality performance was healthy as proforma GNPA was marginally up ~8 bps QoQ to 1.91%. Proforma GNPA in individual and nonindividual book was at 0.98% and 4.35% vs. 0.88% and 4.19% QoQ, respectively. Collection efficiency in individual loans for December 2020 improved to 97.6% vs. 96.3% QoQ while overall collection efficiency remained at ~92%. The quantum of loans invoked and restructured under RBI’s resolution framework for Covid-19 related stress was at 0.9% of AUM (~| 5010 crore), of which ~26% came from individual segment. Of total restructuring, one large account contributed ~| 2600 crore (~0.5% of AUM). HDFC has made provisions worth | 594 crore during the quarter, including Covid provisions, thus taking cumulative Covid provisions to | 959 crore. Further accretion in restructuring could not be ruled out. However, provisioning buffer was at a healthy level of ~2.6% of advances vs. ~2.8% of stressed asset (1.91% proforma GNPA + 0.9% restructuring).