owth in AUM and 82 basis points (bps) improvement in net interest margin (NIM) to 12.3%. USFB’s yield on advances increased by 144 bps YoY to 20.4% while cost of funds declined 40 bps to 8.1%, resulting in an 82bps expansion in NIM. Net revenue grew by 53% YoY to INR 502cr. Operating profit almost doubled (up 98% YoY) due to operational efficiency as cost to income ratio improved 652 bps YoY to 71.3%. Management expects cost to income ratio to be around 70% for FY20 and thereafter it is likely to reduce 500 bps every year for next 3 years. Provisions in Q3FY20 increased ~4x YoY to INR 31cr which includes INR 5 cr provision towards Assam exposure resulting in 66% YoY growth in profit before tax (PBT) to INR 114cr. PAT doubled YoY to INR 90cr due to lower tax outgo with an effective tax rate of 21% in Q3FY20 vs 32% in Q3FY19.