Bandhan's 1QFY19 results indicate strong momentum across all fronts (loan growth 52% YoY, deposits 37% YoY, earnings 47.5% YoY) as well as stability across key qualitative parameters (GNPLs flat QoQ, cost-income ratio 34.2%, down 140bps YoY). Microbanking loan book grew 45% YoY, while other retail loans were up 123% YoY on a low base. CASA deposits were up 84% YoY, with CASA ratio of 35.5%. NIMs benefitted from the recent capital raise to expand to 10.3% and Tier1 ratio now stands at 31.4%. Nonmicrobanking assets are now 14.2% of the loan mix. The bank added 0.39mn microbanking customers (+4.7% growth) and 0.25mn retail banking customers (11% growth). We upgrade our earnings estimates by 2%/5% for FY19/20 resulting into a revised TP of INR650...