3 August 2018 Indiabulls Housing Finance's (IHFL) PAT grew (under IND AS) 30% YoY to INR10.5b on back of 33% YoY growth in loans. While operating profits grew 18% YoY to INR14.6b, lower provisioning requirement under IND AS led to PBT growth of 32% YoY. Asset quality was stable QOQ with GNPA % at 78bp. Company reported gross stage loans of INR9.8b and coverage ratio on the same stood at 25% (flat YoY). For the first two stages provisioning requirement stood at 26bp of loans (based on historical evidence). Credit costs are guided to reduce to 25bp from 70-80bp earlier as home loans proportion increases and no floating provision concept under IND AS. Spread on loans improved 12bps QOQ to 3.23% led by 29bps QoQ rise in yield on loans vs 17bp QoQ rise in cost of funds. Incremental spreads on loans were flat at 2.8% Tax rate was at 25% for the quarter.