41% PAT growth, credit beat guidance, but agri risks linger

Revenue grew 20.7% YoY per delivered result

Delivered PAT growth 41.4% YoY; ₹2310 Cr vs ₹1634 Cr prior year

Delivered credit growth beat guidance; 23% vs 18% target

Implied by 41% PAT growth and effective tax neutrality; not independently verified

Beats prior 13% guidance; sustained healthy growth momentum

Asset quality improving; stress metrics show improvement across segments

Q1 FY27 guided 18% domestic credit; Q2 delivered 23%, beating by 5 pp. Domestic verticals grew 20%+ (Retail +20%, MSME +20%, Agri +34%).

Q1 called for stress monitoring; Q2 shows GNPA down 47 bps to 1.25%, agri stress down 35 bps to 3.51%, SMA 1&2 improved across segments.

No NIM guidance change; reported 3.97%, up 12 bps; aided by write-off recovery (₹125 Cr, 2–3 bps contribution) and discipline on deposit costs.

Q1 expected recovery; Q2 shows ₹1.2K Cr collected of ₹2.75K Cr govt receivable by 30-Sep. Deadline extended to 31-Mar-27; ₹1.5K Cr annual target dependent on govt disbursal pace.

Domestic guidance is 18% (beat in H1 with 23%). All verticals grew 20%+. IBU window temporary; refocus on domestic domestic. Pipeline ₹23K Cr, estimate ₹10K Cr disbursal by Mar-27. No challenge to maintain guidance.

Agri-gold ₹18.6K Cr (up from ₹6.5K Cr Sep-25, ₹12K Cr growth YoY). Secured by gold, backed by RBIGG. Stress improved to 3.51%. No anticipated stress from El Niño. Monitoring closely.

YoY down 4 bps, consciously raised bulk deposit rates; pursuing refinance (FCNR ₹1.51B, infra bonds). FCNR fixed 6.51%, 1-yr CD 7.75%. Focus on core stable retail deposits; high-cost bulk not preferred long-term.

Write-off recovery ₹125 Cr, 2–3 bps NIM contribution. Debt waiver ₹260–500 Cr; total recovery contributed ₹30 Cr NIM benefit, 2–3 bps. Focus now on branch-level profitability across segments.

Eligible ₹3.5K Cr; govt receivable ₹2.75K Cr. 50% recovery (~₹1.2K Cr) done. Deadline 31-Mar-27 per SLBC. Rest subject to state govt process. Targeting ₹1.2K–1.5K Cr annually. Expects extra recovery from write-off and debt waiver.

ECLGS done ₹4.5K Cr (agri ₹530 Cr, MSME ₹3.3K Cr, corporate ₹577 Cr). Agri-business loans under processing; classified as agriculture per PSL. Agri-gold not under ECLGS.

Global yield lower due to IBU (leverage ₹560M only). Domestic yield 9.02% reflects conscious branch-level pricing. No exact IBU yield shared; will follow up offline. Focus is profitable growth via branch-level profitability framework.

Agri loan ₹44K Cr (~₹20K Cr farm credit, ₹24K Cr gold). SLBC restructuring: 33% crop loss triggers 1-yr moratorium, 50% loss = 5-yr repayment (1-yr moratorium). Assumes 10–15% restructure from past. No significant stress visible; closely monitoring.

Pipeline ₹23K Cr: infra 18%, power 12%, road 10%, renewable 10%, metals 10%. Largest funded infra ₹14K–15K Cr renewable in last 3 quarters. Viksit Bharat aligned with govt emphasis. Capitalize on NaBFID partnership for large projects.

Employee count 13K, 2-year target 17.5K. Massive external recruitment. Branch expansion 200 annually (77 done H1). Specialized skill hires for treasury, IBU, IT. Assurance functions strong given regulatory compliance.

Beat in H1 with 23%; all segments growing 20%+. Pipeline ₹23K Cr underpins confidence.

Write-off recovery and branch-level pricing discipline supporting. Cost of deposits down YoY (-4 bps) despite QoQ pressure.

New framework implemented; all metrics (revenue, profitability) tracked at branch level; discipline on mix and pricing.

Retail & MSME expansion in growth centers. Employee base to reach 17.5K in 2 years. Cyber budget ₹985 Cr (FY25–26).

Sectors: infra 18%, power 12%, road 10%, renewable 10%, metals 10%. Market-linked, govt-focused projects.

Agri-gold ₹18.6K Cr (up 34% YoY); agri loans ₹44K Cr. Drought in Maharashtra/Karnataka; El Niño risk. SLBC restructuring scheme cap at 50% crop loss, 5-yr repayment.

₹2.75K Cr govt-receivable portion of ₹3.5K Cr eligible accounts. Only ₹1.2K Cr collected by 30-Sep. Deadline 31-Mar-27 per SLBC, but subject to state govt disbursal pace and cleansing process.

Cost of deposits rose sharply QoQ despite YoY reduction of 4 bps. FCNR deposits fixed at 6.51%, 1-yr CD near 7.75%. Bulk deposits expensive; focus on retail but may limit growth in rate-rising environment.

Large credit ₹36K Cr YoY growth, ₹18K Cr from GIFT City IBU (₹560M leverage). IBU window temporary; reversion to domestic growth could slow headline growth momentum.

Target 200 branches annually (77 done in H1); employee base 13K, targeting 17.5K in 2 years. Rapid expansion may strain cost efficiency if productivity per branch lags or attrition rises.