Record profit masks earnings quality risk: 81% from PSLC, recovery

Delivered exactly ₹1,659.2 Cr, 49.3% growth confirmed. But 81% (₹1,353 Cr) from PSLC ₹863 Cr + recovery ₹490 Cr

Delivered 3.37% global (slightly above 3.35%), 3.48% domestic. Slight beat, within management confidence

Delivered 22.75% YoY advances growth (₹3,22,132 Cr vs ₹2,62,421 Cr). Guidance was conservative baseline, actual well above

Delivered GNPA 1.33% (down 64 bps YoY), net NPA 0.18%, slippage 0.06%. Verified correct. Quality is genuinely strong

NII growth is real and strong. But headline PAT is inflated by ₹1.35K Cr one-time items. Core operating PAT sustainability questioned

Domestic NIM 3.48% (was 3.35% March), global 3.37%. Guided 3.3-3.4%, came in ~3.37%. Slight beat on management confidence in CASA focus + deposit repricing completion

Actual 22.75% YoY (₹3,22,132 Cr) vs guided 13-14% minimum. Management says this is consistent with 20% over last 3 years; guidance is conservative floor not ceiling

GNPA 1.33% (down 64 bps YoY from 1.97%), net NPA 0.18% (down 14 bps from 0.32%), slippage 0.06% (best-in-cycle). Provisioning buffer strong, ECL provisions ₹2,150 Cr of ₹3,000 Cr requirement already booked

Exited ₹10,000 Cr account in April for sub-7% pricing. Shows willingness to forego growth for quality. Management: 'no loss-making business' philosophy. Temporary 10% QoQ corporate decline, expect 12-13% FY growth

IFSCA GIFT City license received 3-4 months ago, branch coming in 2 months, target $500 million book by FY-end. FCNR mobilization ongoing, ₹4.5 lakh NRI customers, doubling $ deposits to $600M by Sep

These are routine, every quarter. NII grew 34.3% YoY, that's the real driver. PSLC, recovery are integral non-interest income, will continue going forward. Last 8-9 quarters show this pattern

₹3,000 Cr requirement estimated; already provisioned ₹2,150 Cr (₹1,700 Cr till March + ₹400 Cr Q1). Will complete in coming quarters. No intent to take 4-year dispensation, handle in one shot

Mostly regularized. Slippage 0.06% (best-in-cycle vs 0.10% March, 0.12% historical). No government guaranteed; CGTMSE/CGFMU coverage in smaller accounts. Asset quality 100% sure

Yield up due to pricing; 54% portfolio MCLR, 37% RLLR-linked. ₹10,000 Cr account exited in April for sub-7% pricing (not matching). 40% covered Q1, rest Q2-4. Pipeline ₹14K Cr, expect 12-13% FY growth

CASA focus aggressive; maintained 41% ratio despite 13-14% total & 17% retail term deposit growth. 6-7% bulk deposit ratio, not aggressive on high-rate deposits. All repricing done 6 months ago

₹476 Cr is exchange, commission, LC, BG, non-fund business, locker rents, demand drafts. Base was low (₹398 Cr last year). No fee structure changes; at sanction, terms fixed, don't change unless rating downgrade

Not conservative. This will be minimum. Last 3 years grew 22% on average; 13-14% is guidance floor. Actual will exceed if normal conditions persist

Last 6-8 quarters consistent improvement. Strategy working well. Going forward, same plan with moderation if needed. If smooth, can see growth. NIM 3.3-3.4%, ROA 1.4-1.5% next 2-3 quarters. Digital: 96% transactions digital, 75% onboarding digital, loan approval in 10 mins, locker in 2 mins

License 3-4 months ago, branch operational in ~2 months. Internal budget target $500 million book by FY-end. Early stage but strategic opportunity

No loss-making business, very clear. 22% overall credit growth achieved; pricing doesn't matter if growth is there. Not interested in corporate at sub-7% if cost of deposit is 4.7%. Maximize income at good price matching cost of funds. Asset quality good, slippage minimal. Fundamentals-focused

Mobilized $300 million. 4 overseas centres, 4.5 lakh NRI customers. Target double to $600-650 million by September (dispensation ending). Personal contact, SMS, email outreach ongoing

Board-approved ₹5,000 Cr. Process of statutory approval ongoing. Expected Q3-Q4, market-dependent. Likely 1-2 or more tranches. Government holds 92.44%; method TBD (QIP likely but public offering option for min public shareholding)

June quarter credit cost 0.14%. Full year expect 0.35-0.40%. Asset quality trajectory best-in-cycle

DTA ₹200 Cr, MTM ₹300 Cr. (Full reconciliation not detailed; partial response)

NIM-driven. Both sides (interest income up, expenses down). Will be on same strategy/trend. Product mix depends on geography/requirement, dynamic thing, RAM ~80%, will maintain that level

Actual delivered 22.75% credit growth YoY; claim this is floor not ceiling. Last 3 years averaged 22%

After ₹10K Cr strategic exit in April, 40% covered Q1, rest recovery expected Q2-4. Pipeline ₹14K Cr sanctioned

Delivered 3.37% global June, 3.48% domestic. Strategy: CASA focus (41% ratio), deposit repricing complete, asset yield up 10 bps QoQ

ROE 22.69% (up 369 bps YoY). NIM-driven improvement. Both interest income & cost of funds being managed

License obtained 3-4 months ago, branch operational in ~2 months. Exploratory stage, small capex allocation expected

₹1,353 Cr (81%) of ₹1,659 Cr PAT from PSLC commission & written-off recovery. Management claims routine & will continue, but if these halve or don't materialize next quarter, profit drops 40%+. Analyst Ajmera challenged sustainability; MD defensive.

SMA 2 increased ₹500 Cr QoQ to ₹4,246 Cr (₹13K Cr total SMA at 4.05%). While slippage ratio 0.06% remains best-in-cycle, the SMA 2 uptick suggests stress emerging at portfolio edges. West Asia headwinds may accelerate this.

Management explicitly flags West Asia conflict 'looming large'. While no material impact yet ('individual cases only, not sectoral'), extended conflict could pressure credit demand and/or asset quality. Rate environment: NIM guidance 3.3-3.4% depends on stable/rising rates; if cuts accelerate, compression risk despite CASA discipline.

₹10,000 Cr account exited in April due to sub-7% pricing not matching cost of funds. 10% QoQ corporate decline visible, but management confident 40% will recover Q2-4 from ₹14K Cr pipeline. Risk is if recovery slower than expected or pricing environment worsens.

₹5,000 Cr equity raise approved Q3-Q4 execution. Government owns 92.44%; unless rights issue or QIP heavily subscribed by government, minority shareholders will face dilution. Also ₹1,000 Cr Tier 2 bonds may impact leverage profile.