Growth outpaces guidance, but cost inflation caps upside near-term

Delivered PAT 785.6 Cr, YoY growth 26.8%

Advances ₹2,87,690 Cr, growth 24.70% YoY, well above guidance

Domestic NIM 3.19% exceeds guidance of 2.8-2.9%

CIR 50.39%, marginally misses <50% target by 39 bps

GNPA 1.96% (vs <2% FY27 target), NGNPA 0.18%, on track

Q1 implicit 10-12% guidance beaten at Q2 with 24.7% YoY; broad-based (Retail +30%, Agri +30%, MSME +20%).

Guidance 2.8-2.9% exceeded at 3.19% domestic (3.0% global); 66% of advances EBLR-linked to benefit from rate hikes.

CIR guidance <50% missed at 50.39%; cited expansion costs (27 new branches, CBDC, RPA, digital marketing). Plan to return below 50% in FY27.

GNPA 1.96%, on track to <2% March 2027 target. Net NPA 0.18%, well below 0.25% plan by March 2027.

Normalized recovery of ₹301 Cr in Q2; Q1 had one-off ₹785 Cr recovery. Going forward, expect ₹300 Cr quarterly run-rate. Accounts already recovered.

Yields hardening globally and in India; treasury profitability under pressure. But 66% of advances are EBLR-linked; repo rate hikes passed through immediately. NII growth will more than compensate. Limited FVTPL treasury portfolio; hedged downside.

Slippages up due to September agri marking cycle (crop loans marked annually). Agri ₹205 Cr, non-agri ₹344 Cr. Half-year vs half-year comparison shows improvement vs prior year Sept (March-Sept 2024 vs 2025). Overall asset quality maintained.

SMA 1 at 0.42% of advances; YoY improvement from 0.77%. Movements are cyclical; manageable. No abnormality; within expected variance for a growing portfolio.

Deposit repricing lags advance repricing (external benchmark linking). As advances EBLR-linked already increased, deposits will reprice on renewal. No immediate pressure; rate increase passed on. Gradual repricing expected.

Both. RAM growth strong (Retail +30%, Agri +30%, MSME +20%). Corporate also grown 24% YoY. ₹10,000 Cr sanction pipeline for corporates. Targeting balanced growth across all segments; will maintain RAM at 65%.

Normal growth. Branch expansion, IT solutions, infrastructure investments, and transaction volume growth drive costs. Operating expenses reflect true growth picture. No abnormal one-offs. Trend expected to continue.

ECL requirement ₹3,200 Cr; already provisioned ₹2,500 Cr. Covered 70% upfront. No material gap. Small changes due to advances growth, but manageable. Already provided for in results.

No significant change in gold loan yield. Maintained as last quarter. If EBLR-linked gold loans, repo hike will automatically increase yield to ~9% (vs prior 9% baseline).

Guidance 12-14% set at year-start by Board. Don't change during year. Last year also grew beyond initial guidance. Will review after Q2. Confident to grow more than guidance, but won't revise now. 24.7% is near 25% quarterly—unsustainable long-term.

Mixed growth. Both volume (more borrowers) and ticket size improvement (from ₹35 Lakh to ₹45 Lakh avg). Housing +20% YoY driven by both factors. Can't precisely bifurcate, but both contributing.

Product exists but not separately analyzed. Very small portion of car loan portfolio. Will work out exact position and come back. Yield will be higher (100-150 bps) as noted.

Yes. 66% of advances EBLR-linked. Repo hike passes through immediately. NII growth will more than compensate for treasury losses. Limited FVTPL portfolio; hedged. Under control.

Big accounts mostly recovered. Focus now on residual TWO portfolio (smaller accounts). Will use SARFAESI, OTS, NDND, OTS schemes. ₹300 Cr quarterly run-rate expected going forward.

Hong Kong, Singapore running well. GIFT City just started. Opportunities exist for each branch. Will take advantage of GIFT City taxation benefits. Expect reasonable growth from all 3 centers.

Result timing internal, based on auditor availability and limited review process. No speculation warranted. Nothing in the pipeline as of now.

Agri slippage ₹205 Cr (up from ₹73 Cr in June, +₹132 Cr QoQ) due to Sept marking. Non-agri ₹344 Cr. YoY: Agri still lower (Sept 2025 ₹238 Cr vs Sept 2026 ₹205 Cr = improvement).

Credit cost 0.65% (vs guidance <0.75%). ECL provisioning ₹570 Cr this quarter. NPA provision increased for ECL forward-looking provisioning. Will maintain below 0.75% for full year.

CIR 50.39% after removing one-off recovery effect (was 45% in June). Expected to maintain ~50% for full year. Will bring below 50% in coming quarters. Prior year Sept was 52.79%, so improving trend.

Broad-based growth from Retail, Agri, MSME, and ₹10K Cr corporate sanction pipeline. Target to maintain growth above guidance.

EBLR-linked advances (66%) benefit from repo hikes; will sustain NIM beyond guidance despite treasury stress.

CIR inflation from expansion (27 branches, CBDC, RPA, digital marketing). Will bring below 50% for full year.

Advances linked to EBLR; deposits repricing on renewal only. Repo hike lag benefit but medium-term funding cost pressure.

Slippages ₹549 Cr (Sept 2026) vs ₹428 Cr (June 2026); ₹205 Cr from agri marking. YoY improved vs ₹629 Cr in Sept 2025.

CIR 50.39% vs <50% guidance. 27 new branches, CBDC, RPA, digital marketing, IT investments driving cost growth.

Deposit growth 14.4% is respectable but tightening liquidity and RBI policy shifts may require higher rate offers. CASA ratio declining.

3 international centers opened; GIFT City just launched. Revenue contribution minimal. Regulatory/compliance overhead.