Beat loan growth & credit costs; opex deferred; deposit pressures & yield compression risks remain

Deposits ₹48,129 Cr +25% YoY, CASA ₹12,930 Cr +37.8% YoY—both claims match reported data

Secured ₹21,638 Cr +42.7% YoY, now 50.4% of book—on track, 4.6 ppts to 56% target

Bucket X 99.7% confirmed; slippages 1.72% vs 2.68% prior—40% reduction validated

NII ₹1,186 Cr, NIM 8.5% reported; cost of funds improved to 6.86%, supporting stability

Credit costs ₹127 Cr = 0.9% of ATA; full-year guide revised down from 1.4-1.5%

PAT ₹317 Cr yields 2.2% ROA; new FY27 guide 1.8-2% confirmed as +20 bps upgrade

Driven by credit cost outperformance (0.9% vs 1.4-1.5% prior) + deferred capex lowering FY27 opex. Upgrade materiality: +20 bps minimum.

Q1 actual 0.9%; microfinance slippages dropped 40% QoQ to 1.72% annualized. Collection efficiency 99.7% across states. Materiality: ~60 bps better.

FY27 opex ratio now 6.4% ATA vs earlier higher plan. ₹250 Cr spend deferred from Q1 to Q2+. Benefit overstated (one-quarter timing gain); still material.

No change to 25% FY27 guide but Q1 delivered 28.9% loan growth, suggesting upside or early-year strength.

Cost of funds 6.86%; deposit pressures acknowledged but alternative funding (IBPC, securitization, FCNR) available. No change to near-term NIM guide.

Affordable housing yields 12.5% stable via geography/ticket-size mix (₹16-20L). Micro mortgages 19.5% healthier, 70% semi-urban. Not forced to compromise; geographies and ticket-size positioning maintain yields.

100+ branches activated in gold loans in Q1 + increased MFI customer demand both drove acquisition. New business for us; late entrant benefit of understanding market nuances and building fit product.

Deposit growth aligned with asset growth. Have IBPC, securitization, refinance optionality. Marginal COF increase expected, baked into 1.8-2% ROA guidance. No very significant increase foreseen.

Pre-owned cars piloted in Karnataka, will test 2-3 geographies this year, scale next year. HCV/LCV only after FY27 once segment clarity achieved.

₹250 Cr capacity spend planned, minimal Q1 due to planning delays. Started June. Will build Q2-Q4. ROA guidance 1.8-2% already accounts. NIM stable via yields (gold, MSME offset COF) and alternative funding (IBPC, securitization).

Confident of maintaining same CASA growth delivered this quarter. Whatever projected, very much committed or may over-deliver slightly on CASA ratio.

Bucket X 99.7% very healthy; slippages down to 1.72% annualized from 2.68% Q4. July trends same. 5-7 bps variance only marginal impact. No early warning signs; portfolio stable.

PAR 1.2%→1.5% not very significant. Bucket X 99.7-99.75% consistent 24 months. Book 3 years old, 18/24 MOB still small. Even mature books <2.5%. Quality solid, locations good.

Conscious strategy to migrate up ticket curve. Yield + opex trade-off monitored. Opex decline doesn't fully offset yield drop but opex + risk together offset. Continue band this year; revisit next year.

Significant slippage reduction (1.72% annualized vs 2.68% Q4). Bucket X 99.7% steady. Slippages down + collection up = better credit cost. Provisions held ₹657 Cr.

Beat Q1; assuming moderation H2, 25% target easily achievable; may exceed

4.6 ppts gap; secured growing 42.7% YoY; on track, execution visible

Maintained Q1; cost of funds 6.86% improving; deposit pressures offset by higher-yield products (gold, micro mortgages); IBPC, securitization, FCNR available

Deferred from Q1, starting June; will build Q2-Q4; full impact in opex ratio 6.4%

RBI kept policy rate 5.25%; deposit market tight. Cost of funds 6.86%, improving but market pressure persistent. CRO acknowledged competitive intensity in CASA. If deposit rates rise faster than NIM guide, margin compression risk.

MSME consciously moving up ticket size (LAP ₹58-60L→₹80-90L, WC ₹70-80L→₹1.1-1.2 Cr). Yield down from 11-11.5% to 10.5%. Trade-off: lower yield but lower opex and higher ROE via leverage. Long-term sustainability of 1.8-2% ROA depends on this holding.

El Niño strengthening; rabi harvest done but kharif sowing delay risk. MFI growth 16.8% YoY (high teens) but guidance high single-digits, suggesting slowdown expected. Agricultural distress could pressure MFI demand and collection rates.

Gold loans ₹1,020 Cr (+248.6%) rapid growth but from ₹300 Cr base. Pre-owned cars piloted only in Karnataka. Mid-corporate lending just commenced Q1. All unproven at scale; credit quality deterioration or market slowdown could derail.

₹250 Cr capacity spend (branches, branding, tech, analytics) deferred from Q1 to Q2+. If further slippage or execution delays, Q2-Q4 opex and FY27 guidance impact material. Deferred spending creates artificial Q1 profit bulge.