Margin expansion delayed; revenue growth stalled at 3.1%

3.1% revenue growth; core advances 15.4% (after ₹22,411 Cr IBPC shedding)

Domestic +3 bps, global +3 bps Q-o-Q; global still below 2.6-2.7% guidance midpoint

Both down 100/10 bps YoY; well within <2.5% gross, <0.3% net guidance

Delivered revenue only 3.1% YoY; op margin 22.8% vs ₹7,519 base suggests timing mix

Accurate; 60% reduction; gold loan portfolio doubled to ₹32K Cr (103% growth)

₹22.4K Cr IBPC (vs ₹9K Cr guidance estimate) + ₹34-35K Cr corporate shed in Q1 means FY27 revenue growth will be lower than prior guidance implied; but margin quality rising.

Domestic NIM 2.64% vs 2.61%, global 2.50% vs 2.47%. Deposit cost down 34 bps YoY; management confident of Q-o-Q gains. Within prior 2.6-2.7% band, not an upgrade.

Retail (ex-IBPC) 17.5%, MSME 19.8%, agri 16.4% vs ₹22K Cr high-yielding shedding. Loan portfolio mix improving but headline growth capped by base subs.

PSLC cost ₹360 Cr vs ₹893 Cr prior year (60% down). Agri gold 100% growth, SHG outreach active. Internal target: ₹5-10K Cr seller position by FY28.

Q1 CIR 50.31% vs 55.31% prior year (500 bps improvement); target 47-48% by FY27 end. ROA 1.04%, ROE 17.33%.

Higher deposit repricing complete by May; deposit cost down 34 bps YoY. Shedding ₹22K Cr IBPC + ₹34K Cr low-yield corporate; still growing credit 10%+ because of high-yielding RAM shift.

Retail (ex-IBPC) 17.5%, MSME 19.8%, agri 16.4%. Profitability is topmost parameter. Corporate book 10% growth. Rebalancing ongoing; not chasing headline growth.

RBI announced; deposit rate down. Bank committed to ₹2.5 billion USD; already mobilized ₹425 million. Good traction; will help reduce deposit cost long-term.

80% of ₹28K Cr at good price; ₹7-8K Cr still at lower rate, maturing this quarter. Final outstanding after 90-120 days: ₹16-17K Cr at matching rate.

Rough calc: ₹9.5-10K Cr one-time (floatation provisions count as offset). Recurring: 10-12 bps per quarter. Approvals in place; no challenge.

Digital cash-flow lending (new), improved underwriting, 200 outreach centers per quarter. ₹25-27L Cr credit gap in MSME space. Secured via CGTMSE 75% coverage. No stress in book.

Will be challenge to agri income & overall economy. Last year monsoon delayed; will see in Aug-Sep. If El Niño occurs, some challenges ahead.

Many repriced and sustained. But ₹15-17K Cr exited because bank didn't match the rate they were asking; allowed them to exit.

Corporate loan book ₹4L Cr sanctioned; processing fee from sanctions & NBGs. Growth from overall credit + corporate book. Improved TAT & decision-making.

PSLC cost ₹360 Cr vs ₹893 Cr prior Q1. Agri gold 100% growth helps PSL. Next year: expect PSLC seller position ₹5-10K Cr. CIR target 47-48% by FY27 end.

Prudent decision. ECL hits from Apr '27; bank taking hit now to avoid surprises then. Operating profit, net profit, CIR still improving. Float ceases post-Mar '27.

Q1 advances 12.7% overall (15.4% core). High-yielding RAM growing 16-19%. ₹95.5K Cr new credit sanctioned in Q1; ₹1.38L Cr pending disbursement.

Domestic NIM 2.64% in Q1; deposit cost down 34 bps YoY. Expected Q-o-Q margin improvement every quarter; deposit repricing complete.

Global NIM 2.50% in Q1 (+3 bps QoQ). CASA strategy (savings account balance +9.3% YoY) to support uplift.

Branch network focus on RAM segments and underserved geographies. Digital-first delivery reducing physical footprint need.

Utilized 82-84% prior year. AI, GenAI, quantum-safe, data center augmentation (Gurgaon high-tech DC). One more ₹1L Cr digital loan sanction target for FY27.

Agri-related income exposure; prior-year monsoon delay noted. No material impact Q1, but Aug-Sep will be tell-tale. El Niño scenario poses economy-wide challenge.

₹22.4K Cr IBPC + ₹34-35K Cr corporate shedding in Q1 alone results in only 3.1% revenue growth YoY. If shedding pace doesn't slow, FY27 revenue CAGR may remain sub-5%, pressuring investor expectations.

Domestic NIM +3 bps QoQ is gradual; global NIM 2.50% still below 2.6-2.7% guidance midpoint. If deposit repricing complete and credit repricing faces ceiling, margin expansion may plateau before target.

ECL implementation mandated from FY28. Floatation provisions (₹2.435K Cr built up) will offset ~₹2.5K Cr of the one-time hit, leaving net ₹7-7.5K Cr to be absorbed. Recurring 10-12 bps impact on quarterly earnings.

While overall SMA 2.9% is low, analyst mentioned pain in textiles, chemicals, steel. Management downplayed but these sectors represent mid-single-digit exposure in corporate book. Watch for Q2-Q3 deterioration.