Kotak Mahindra Banks (KMB) 3QFY17 performance was positive on all parameters, namely (1) Loan growth (3% QoQ), which, though modest, was better than estimates and improves the growth outlook, (2) Fees grew ~15% QoQ (after ~12% QoQ in 2Q), (3) Strong CASA growth, (4) Steady and healthy NIMs, (5) Stable C-I ratio at ~48%, despite demonetisation related opex and (6) Superior asset quality. Amongst subsidiaries, the capital market-related businesses (AMC and IB) reported strong earnings growth.