19 January 2019 Healthy loan growth and improved other income helped HDFCB to report strong 3QFY19 PAT of INR55.9b (20% YoY) in line with our estimates. NII grew by 22% YoY to INR125.7b (in line) while margins were stable at 4.3%. Over 9MFY19, PPoP grew by 21.5% while PAT grew by 19.7%. Core fee income grew by 27% YoY to INR36.5b led by healthy payments/cash management fees. Treasury gain of INR4.74b v/s loss of INR0.33b in 2QFY19 boosted other income growth by 27% YOY to INR49.2b. Opex grew 17% YoY/7% QoQ (higher than estimate by 5%) and resulted in PPoP growth of 27.