16 July 2018 DCB Bank (DCBB) reported PPoP growth of 4% YoY 6% below our estimate due to an NII miss of 4% (17bp QoQ contraction in the NIM due to an 8bp decline in yield on advances and a 6bp increase in cost of funds). Other income declined 3% YoY (-2% QoQ) off a high base. with cost to assets of 2.8% being the Provisions of INR332m (-6% YoY) were lower than our estimate, which offset the 6% PPoP miss. Consequently, PAT of INR695m (+7% YoY) came largely in line with our estimate. Strong growth in AIB (+38%), MSME (+43%) and Corporate (+48%) books led to 4.5%/30.6% QoQ/YoY growth in the loan book to INR212.4b. Other smaller categories such as CV (+57%), gold (+31%) and construction finance (+31%) also showed strong growth, while mortgages grew marginally slower at 18% YoY. Slippages inched up to INR1.07b (2.6% v/s 2.1% in 4Q), led by elevated slippages in AIB.