RBL's 3QFY18 PAT increased 28% YoY to INR1.65b, below our estimate by10%, mainly due to opex missing estimates by 9% (retail expansion costs)and higher provisions (as the bank provided INR500m toward MFI book, out of total provisions of INR823m), despite NII (INR4.7b; +11%/+45% QoQ/YoY)exceeding estimate by 5%. Key positives were: a) loan growth of 10% QoQ and 38% YoY, b) fee income growth of 50% YoY, driven by 183% growth in distribution/CC fees and c) margin improvement of 15bp QoQ to 3.89%,driven partly by a reduction in cost of funds from CASA inflows and partly by an increase in the CD ratio.