REPCOs 4QFY18 PAT increased 10% YoY to INR566m (in-line). Modest loan growth, a tapering cost-to-income ratio and a sequential decrease in the GNPL ratio were the key highlights of the quarter. Sanctions increased 19% QoQ to INR9.2b, while disbursements rose 29% QoQ to INR8.5b. This was modestly below managements guidance of sanctions of 24 May 2018 INR10b in 4QFY18. Management indicated that the core market of Tamil Nadu (TN) still faces lingering effects of the sand mining ban, as TN loan book growth was a tepid 6% YoY. Consequently, loan growth was at 10.3% YoY (v/s 9.6% in 3QFY18), resulting in a loan book of INR98.6b. LAP book has remained steady at INR17-18b for the past seven quarters. Calculated spreads increased 25bp QoQ to 3.4%, driven by stable yields and a 25bp reduction in CoF. We believe cost of funds has bottomed out and this should have an impact on spreads, going forward.