1 February 2019 PAT declined 15% YoY (-6% QoQ) to INR9.9b (3% miss) in a quarter characterized by tepid loan growth and stable asset quality. Management adopted a cautious stance on disbursements, which were at INR39b. AUM grew 16% YoY to INR1.24t. However, Management guided for 20-25% of AUM growth and 10-15% balance sheet growth over the near term. Incrementally, loan assignments will be a key source of generating and maintaining balance sheet liquidity. IHFL reduced its exposure to sub-3 month CPs it was down from 12% to 3% YoY. Management targets to limit its share to 5% of total borrowings. Asset quality was stable, with stage 3 loans at 79bp and coverage ratio of 25%. In addition, the Palais Royale project, which is an NPL, has witnessed initial signs of recovery IHFL received INR2b in Jan19 and expects a similar amount annually over the next four years.