Higher MTM Provisioning Drags Performance; Maintain BUY HDFC Bank has reported a below par performance on bottom-line front in 1QFY19 led by sharp rise in MTM provisioning for corporate bond portfolio. Its standalone PAT grew by 18.2% YoY (-4.1% QoQ) to Rs46bn owing to Rs2.9bn net loss on bond portfolio and relatively muted growth in NII (15.4% YoY & 1.5% to Rs108.1bn) led by 10bps QoQ moderation in NIMs to 4.2%. Its loan book grew by 22% YoY (+7.6% QoQ) to Rs7,086bn owing to strong sequential growth in home loan (+21.4%), domestic corporate loan (+14.4%) and personal loan (+8.4%). Deposits grew by 20% YoY (+2.2% QoQ) to Rs8,058bn led by strong growth in term deposits. Thus, the resultant...