22% growth delivered, NIM stable; credit cost above guidance

Q1 gross advances ₹9,074 Cr, 22% YoY growth; vision anchored by geographic expansion, MSME 49% YoY growth

NIM 4.21% (up from 4.06%), deposit cost down to 5.6% (from 5.8% Q4); CD ratio 83%, targeting mid-to-high 80s

Q1 ROA 1.3% (up from 1.18% YoY); claims ROE expansion underway but specific FY27 ROE not disclosed

Q1 credit cost 0.31%, above guided range; provision coverage increased to 54.5% to drive net NPA to <1%

GNPA improved 28 bps YoY to 2.47%; NNPA improved from 1.39% YoY to 1.14%; recovery-driven, not denominator effect

NIM rose to 4.21% from 4.06% prior quarter on 20-30 bps deposit cost reduction; repricing of ₹1,600 Cr in Q2 expected to add 10-12 bps

Q1 credit cost 0.31% vs prior guidance 0.15-0.25% range; proactive provisions to bring net NPA to 1.14% (vs 1.24% prior quarter)

Business loan segment 49% YoY, 11% QoQ growth (up 6 consecutive quarters of acceleration); now 27% of loan book vs 22% year ago

Reiterated ROA 1.35-1.4% FY27 (Q1 at 1.3%), ROE 15%+ by FY29; no upgrade, on track

MSME growth 49% YoY, 11% QoQ, similar pace in both Punjab and Haryana; moving net NPA to <1% level, majority of PCR increase done, expect stable PCR ahead

ROA targeting 1.35-1.4% FY27 (Q1 at 1.3%); PPOP margin improved 1.94% to 2.04%; some repricing left in Q2 but not material

₹1,600 Cr term deposits repricing Q2 (10-12 bps benefit); 50% floating advance book provides cushion; new vs repriced deposits offsetting; CD ratio expansion from 83% will drive NIM expansion in FY28-29

Consumption ~7% (stable, top-up loans); target 75-82% in business, agriculture, mortgage; LAP growing 18% YoY at 12.27% yield; housing loan 3% QoQ, 10% YoY growth

PSU pricing reduced post-EBR transmission lag; CSFB repricing benefit now gives level playing field; housing loan ₹20-25 Lakh ticket in semi-urban/rural (74% branches), middle-income focus (₹6-40 Lakh income); private banks target >₹1 Cr MSME, we target ₹10-50 Lakh

Agri yield 12-12.5% is industry standard; targeting farmers ₹5-35 Lakh need, progressive (2-3 crops/yr), 2 MSP crops, 50% LTV collateral; risk-mitigated structure; 10-12 year track record in appendix

Yes, customers eligible for ECLGS 20% working capital guarantee; MSME GNPA ₹65.41 Cr (Mar-23) down to ₹54.54 Cr (Jun-26), not denominator effect; absolute recovery ongoing

Annual reset portfolio 48.67%, primarily MCLR-driven; MCLR increased 10 bps Q1, providing NIM protection when rates rise

80%+ of MSME customers avail working capital facility; strategy to be primary lender, multiple hooks (salary accounts, family deposits, protection plans); family-level engagement drive

FY27 modest opex improvement (Q1 annual increment boosts Q1, spreads over year); FY28-29 big opex momentum on scale; expect material ROTA expansion FY29 via opex leverage

75%+ deposits from semi-urban/rural, agri-linked; crop money flows Q1/Q3 (procurement/harvest); Q2/Q4 advance growth outpaces deposit growth by design; FY26 both grew 21%; CD 83% (lowest SFB), room to grow advances further

Aspiration for UCB at appropriate time; ticking all boxes except net NPA (working to <1% over 2 quarters); Board will decide timing; growth strong in current avatar

Q1 delivered 22% YoY advance growth ₹9,074 Cr; MSME 49%, non-Punjab 30% pace support acceleration; franchise momentum strong

Q1 ₹9,074 Cr; at 22% CAGR FY27-29 → ₹13.3 Cr by FY29; geographic expansion (target >300 branches vs current 216) to support

Q1 NIM 4.21%; deposit repricing benefit (10-12 bps Q2 incoming, some headroom left); 50% floating rate, 50% fixed book; CD ratio expansion key lever

Q1 cost-to-income 59.5% (vs 60.6% prior year); opex headroom from annual increment concentrated in Q1; FY29 opex leverage major contributor to ROTA expansion

50% of advances on fixed rate; new deposit costs may rise even as old deposits reprice down, offsetting margin benefit. System-wide yield compression noted.

Q1/Q3 deposit growth strong (agri-driven), Q2/Q4 flat for 5 years. Requires careful advance management; CD ratio 83% is lowest in SFB but must increase, creating liquidity tension.

Q1 credit cost 0.31% vs prior guidance 0.15-0.25%; higher provisions to reach <1% net NPA target by FY29. SMA-2 uptick to 3.11% (from 2.71%) signals early stress, especially in Q1 seasonally.

MSME now 27% of book, grown 49% YoY, 11% QoQ; rapid scaling of new geographies (Haryana parity with Punjab). May attract lower-caliber customers as market saturates.

Management aspires to UCB conversion after bringing net NPA <1%; timing uncertain. Regulatory approval risk and capital/infrastructure requirements unclear.