MMFS reported PAT of INR 780mn in 2Q18 (vs. JMFe of PAT Rs1.39bn) as credit costs remained elevated at 396bps (vs.313bps in 2Q17) due to migration to 90DPD this resulted in additional provisions of INR 177mn and income reversal of INR 70mn; adjusting for which PAT stood at INR 2.43bn (156% YoY). Asset quality witnessed signs of improvement as Gross NPL (on 120DPD) on an absolute basis increased by just 8% YoY and GNPL ratio (on 120DPD) improved 72bps YoY to 10.5%. GNPL ratio stood at 12.6% (on 90DPD) while coverage ratio remained stable at 51% (vs. 51.8% on 120DPD) despite migrating to 90DPD. AUM growth remained stable at 14% YoY while margins (NII/AUM) increased 15bps YoY...