KMBs PAT increased 15% YoY to INR11.4b (in-line) in 2QFY19. NII grew 16% YoY to INR26.9b, led by healthy loan growth of 21% YoY. Margins, however, contracted by 10bp to 4.2%. Based on our full-year estimates, we believe KMB should deliver PAT of INR25.4b in 2HFY19 (INR21.7b in 1HFY19). (+4.5% QoQ), led by strong growth in retail loans 24 October 2018 (+28% YoY), while deposits increased by 24% YoY. SA deposit growth was healthy at 36% YoY (43% YoY on daily average basis), with incremental cost of SA at 5.65%. Core deposit mix (CASA + TD less than INR50m) was at 79%.