HDFC Bank NIM declines 30 bps: NIM declined 30 bps q-o-q led by a rise in costs of funds by 20 bps while yield on advances declined 10 bps. While the bank raised the base rate by 20 bps in the quarter, full impact did not come through in the quarter. We note that only 25% of HDFC Bank?s loan book is base rate linked and competitive intensity in retail loans, combined with subdued demand, limited the bank?s ability to push higher rate on retail products. We believe that NIM has scope to decline further as the ability to push interest rates would be challenging in retail products, especially with public banks cutting interest rates recently. Further, shifting to wholesale is a lot more margin dilutive activity for HDFC Bank. We broadly maintain our negative outlook on NIM, especially over the next few quarters. Total deposits grew 14% y-o-y led by growth in saving (18% y-o-y) and term deposits (17% y-o-y).