Operationally strong ; IL & FS exposure leads to PAT miss IndusInd Bank reported an operationally strong quarter in 2QFY19, with operating profit up 22% YoY (in-line with JMFe). However, IIB's PAT missed our estimates by 15%, largely driven by elevated provisions on account of exposures to the IL &FS; group (currently classified as standard). IIB made contingency provisions of INR 2.75 bn against the account (14% of PPoP), resulting in flattish PAT in 2QFY19 (+4.6% YoY). The exposure to the group, although not quantified by management, is on 2 counts a) At the SPV level to a completed and currently tolling tunnel project (AAA rated recently) and b) At the holdco level, where IIB has...