Gruh Finance (GRHF) reported PAT of INR778m (4% above our estimate) for 2QFY18, largely driven by lower-than-expected operating expenses. Opex growth slowed down to 11% YoY, resulting in 300bp YoY reduction in C/I ratio to 17.6%. In FY17, the company had incurred significant lagged expenses of branches opened in FY16, which will not recur this year. Loan growth was in line with trend at 18% YoY, driven by retail home loans. However, disbursement growth was robust at 28% YoY (in line with 1QFY18 performance). While the management expects ~30% disbursement growth in...