JKBK reported PAT of INR725m in 3QFY18 (+1.1% QoQ), exceeding our estimate by 3%, aided by 33.8% growth in NII. PPoP was up 30.6% YoY (4%beat), despite high opex (23.1% YoY), raising the CI ratio to 57%. Provisions of INR2.5b were 5% below our estimate. Tax rate for 3QFY18 was 45.4% (v/s40.9% in 2QFY18). NII grew ~34% YoY (+8% QoQ), led by an improvement in margins to 4%(+24bp QoQ, +103bp YoY) and a pick-up in loan growth (INR579b,+12.8%/+28.5% QoQ/YoY). NIM improved despite 27bp/55bp QoQ/YoY decline in yield on advances, as the bank shifted its treasury portfolio for growing loans.