10 July 2018 IndusInd Bank's (IIB) 1QFY19 PAT grew 24% YoY to INR10.4b (marginally below our estimate). NII rose 20% YoY, while the NIM moderated 5bp QoQ, driven by an increase in funding cost (+22bp QoQ). Total income grew 16% YoY due to muted other income (+12% YoY) on account of low treasury gains (INR1.37b v/s INR1.93b in 1QFY18). Core fee income grew 20% YoY, led by 32% growth in distribution income. Controlled opex growth of 12% YoY (CI ratio declined 80bp QoQ to 44.2%) led to PPoP growth of 20% YoY (+8% QoQ). Loan growth was led by robust growth in large corporates and small businesses, driving 30% YoY growth in the corporate portfolio. Consumer portfolio grew 28% YoY (+5% QoQ), led by strong traction in the CV loans, equipment financing and credit card segments. The share of retail loans to total book stands at 40% (46% if considered BBG as part of CFD).