Strong growth masks margin compression; core PAT concerns

Revenue 8.7% YoY; credit grew 21% but revenue lagged significantly

Includes ₹1,018 Cr TWO recovery, ₹800 Cr non-recurring; core growth much lower

Depressed by ₹1,237 Cr one-time DTA charge; regular tax ~₹625 Cr only

Delivered 21% vs 12-14% but guidance NOT raised, described as conservative

Delivered 3.05%, above guidance; cost of funds 4.36%, down YoY

GNPA -55 bps YoY, NNPA -20 bps YoY, PCR 97.85%; all guidance targets met

Delivered 21% vs guided 12-14%; guidance not raised, called conservative. Pipeline ₹15,000 Cr.

Reached 3.05% vs 2.8-2.9% guidance; cost of funds 4.36%, down YoY from deposit repricing

Only 8.7% YoY despite 21% credit growth; margin pressure evident, not reflected in prior calls

37.49% this quarter but will rise to ~50% as TWO recovery won't repeat; efficiency gains temporary

Cost of funds 4.36%, stable after deposit repricing. Cost-to-income will be below 50% for FY27 (normalized). NIM 2.8-2.9% target, currently 3.05%. Credit growth 12-14% maintained with ₹15,000 Cr pipeline.

No IBPC exposure. Focusing RAM sector (25.27% growth, retail 27.3%, agri 30%, MSME 19%). Corporate advances 17% growth. Yield maintenance strategy ongoing.

400 branches in state, 5 zonal offices. Seeing opportunities in infrastructure, industrial, steel, railway sectors. Connecting with corporates in Calcutta. Prepared to capitalize on state growth.

Moved to new regime (mandatory). DTA charge ₹1,237 Cr one-time. Roughly ROA could have been over 1% had charge not occurred. Not formally recalculated.

All are competitors. View as opportunity—market expands with multiple players. Have full product suite. 35,000 Cr digital balance sheet. 70% fixed deposits via digital.

Growth: deposits, CASA, RAM (home 20%, vehicle 65% YoY, MSME 19-20%, agri/gold loans). Corporate: infrastructure, renewable energy, transmission, steel, cement. No stress or risk seen in any sector currently.

Acknowledge 21% actual vs 12-14% conservative guidance. Endeavor to grow above industry. Will review after Q2 results. Maintaining guidance now.

Sanctioned ₹2,150 Cr, disbursed ₹1,700 Cr (only ~50% of eligible). No stress in MSME accounts. Slippage 0.63% annualized. SMA book ₹1,009 Cr (0.36% of advances). All contained.

Preliminary assessment for April 1, 2027 transition done. Already created 60% of requirement. Plan to create remaining 40% over 4-5 quarters. IT and knowledge partners in place.

Retail: no pressure, best rates maintained (linked to Repo). MCLR increased 5 bps to 8.80%. Corporate: yield improvements in some categories. Bond-credit rate trade-off determines demand.

No recovery from JP Associates account. No recoveries from SRs for this account.

Cost of deposits: reclassification of deposits/borrowings between international and Indian books. Overall cost of funds declined. Corporate book: good demand in working capital availments. Trade-off with bond market creates opportunity.

Processing fees: changed from lumpsum upfront to actual charging; Q1 has fewer renewals. Will normalize. Other commission: PSLC sale ₹2,000 Cr, earned ₹55 Cr commission, plus normal growth.

Guidance described as 'conservative' by MD. Credit growth 21% actual suggests revenue may outpace, but revenue +8.7% lags credit +21%

Currently 3.05%, cost of funds 4.36% down. Yield on advances stable. Cost of deposits stable after repricing

Digital initiatives ongoing; Omni-Channel and Cash Management Services in pipeline

Revenue +8.7% YoY vs credit +21% YoY suggests yield pressure, product mix shift, or deposit repricing not offset by advances growth

PAT declined -18.1% QoQ despite revenue +5.1% QoQ, indicating cost/provision pressures overwhelming growth. Normalized cost-to-income will rise from 37% to ~50%

Operating profit +79.8% driven by ₹1,018 Cr TWO recovery (₹800 Cr non-recurring). Without this, operating profit growth would be low. Core NII +16.85% is the true baseline.

ECLGS 5.0 exposure ₹2,150 Cr sanctioned, ₹1,700 Cr disbursed. Geopolitical stress (Iran-US war) flagged by analyst. Management says no stress seen yet, but early.

One-time DTA charge ₹1,237 Cr from tax regime shift to 25% (new regime). Regular tax provision ~₹625 Cr only. Future quarters will show higher effective tax rate.