Kotak's consolidated profits for 2QFY18 were up 20% YoY and were in-line with our estimates. Growth in customer assets, which had picked up in the previous quarter, sustained in 2QFY18 with 21% YoY growth (22% YoY in consolidated loan book) and management commentary on growth outlook remains confident. Key positives during the quarter were a) significant decline in cost-to-income ratio (down ~200bps YoY) despite additional expenditure pertaining to 811' and priority sector certificates, b) Strong SA growth of +61% YoY driven by government business, and c) management disclosure that Post-IFRS networth of the bank will be higher than under the current accounting methodology. Subsidiaries, too,...