Bharat Financial Inclusion Ltd (BFIL), for Q1FY19, continued to report good set of numbers with the non-AP loan book growing 43.7% YoY to 13,832 crore as on 30 Jun'18, the fastest growth post-demonetisation. Net interest income and preprovisioning profit grew by 70% and 56%, respectively. With a 207bps YoY decline in cost-income ratio (CI%) and lower credit cost, the net profit grew at a robust pace of 196% (2.9x) to 142 crore. Asset quality remained healthy with the gross NPAs at 0.3% and net NPAs at 0.1%, as on 30 Jun'18. Recommendation: Since our last update (Hold: Q4FY18 @ 1,145 on 27 Apr'18), the stock of BFIL achieved our then target price of 1,240 and corrected to 1,204...