Growth Moderation & Asset Quality Risks to Limit Upside in Valuations IndusInd Bank (IIB) has reported a better-than-expected PAT growth in 1QFY20 driven by higher treasury gains and lower-than-expected provisioning. Ex-BHAFIN loan book grew by 26% YoY, with the lowest sequential credit growth of 1.9% in the last 6 years. Consequently, while overall margins improved to 4.1% owing to the BHAFIN merger, IIB's margins at 3.7% (ex-BHAFIN) were lower than average margins of 3.9% over the last three fiscals. Asset quality was well contained, with GNPA at 2.15%, marginally higher on QoQ comparison. Deposits growth at 26% YoY was primarily driven by retail deposits, with a sequentially stable CASA. Core fee income growth...