Gruh Finance's (GRHF) PAT rose 28.3% YoY to INR822m (in-line) in 3QFY18.The quarter was characterized by a strong pick-up in disbursement growth(due to a lower base), stable margins and good asset quality. Loan growth was in line with trend at 18% YoY, driven by retail home loans.However, disbursement growth was robust at 37% YoY - a pleasant surprise - led by home loans and LAP. Developer loan disbursements were largely in line with trend. Interestingly, GRHF was able to sustain yields at 11.8% (same for the past three quarters), despite a very competitive environment. Cost of funds witnessed a minor uptick (+7bp QoQ), mainly due to a rise in GSec yields.