PNB Housing Finance's (PNBHF) 3QFY18 PAT grew at a robust 58% YoY toINR2.18b, led by strong AUM growth, improvement in margins, and lower C/I ratio. Disbursements more than doubled YoY to INR93b (off a low base). Consequently, AUM increased 53% YoY to INR577b - 5% ahead of our estimate of INR549b. AUM mix continues to inch closer towards non-core loans (LAP, construction finance, etc). Share of these loans increased 160bpQoQ and 400bp YoY to 42.8%. While calculated spreads (on AUM) came in sequentially flat at 2.08%, the management has lowered its spread guidance from 210-225bp earlier to195-210bp due to rising G-Sec yields. It has also guided to the following liability mix: Deposits - 25%, NCD- 45%, CP- 15-18%, Banks ??? 10%+, NHB ???5%.