Strong PAT growth masks soft revenue; margin expansion capped by competition
The verdict, the claims that held up, the sharpest analyst exchanges, and the risks — the earnings call, decoded from the transcript.
Hold
confidence 6/10
Grade B
Met average loan growth guidance 15-16% (headline 18.3% inflated by transient corporate). Margin expansion cautioned not guaranteed. Retail book growth lags disbursement claim by 3-4Q.
Optimistic
next 1–2 quarters
Optimistic
multi-year
Strong PAT recovery (+32.5% YoY) driven by credit recovery and deposit cost discipline, but revenue growth remains soft at 5.9% YoY and one-off gains are moderating (SR down 75% YoY). NIM held at 2.7% with limited sequential expansion; management caveats rate cuts on par and deposit competition intense. Asset quality best in 10 quarters. Forward 1% ROA and 3%+ NIM guidance exist but are multi-year and capped by macro headwinds; near-term retail growth lagging disbursement momentum. Bank is on recovery path but quarterly delivery doesn't yet validate forward optimism.
₹8054.5 Cr
Revenue · +5.9% YoY₹1071.8 Cr
Reported PAT · +32.5% YoYFlat
Margins · vs guidance: MixedDid the claims hold up?
Net Profit grew 33.7% YoY to ₹1,071 Cr
OVERSTATEDDelivered PAT ₹1,071.8 Cr, YoY growth 32.5%
Loan growth in 15-17% range on average basis
METHeadline 18.3%, but management clarified average balance 15-16%; transitional corporate growth inflates point-to-point
NIM improved 20 bps YoY to 2.7%, aspiration 3%+ over 2 years
METNIM 2.7% held flat Q-o-Q; margin expansion cautioned as 'steady climb' not straight-line, rate cuts on par, deposit competition intense
SR gains ₹86 Cr this quarter; maintain FY27 guidance ₹800-1000 Cr
METSR gains down 75% vs Q1 FY26 (₹338 Cr); management candid on J.C. Flower timing volatility; guidance caveated
Retail disbursements growing 27.5% YoY; trajectory to mid-teens book growth by FY27
PartialRetail advances only 6.9% YoY; management acknowledges run-off lag, expects 3-4Q before disbursement momentum reflects in book
ROA 0.9% Q1, aspiration full-year FY27 around 1%
Partial0.9% Q1 is below FY26 exit at 1% and below full-year aspiration; Q2-Q4 must strengthen sequentially
Earnings quality
What changed since the last call
Margin expansion timeline extended
DowngradePrior guidance aspired 3.25-3.5% NIM medium-term; now 3%+ over 2 years, caveated as 'steady structural climb' not quarter-to-quarter. Rate cuts on par, deposit competition intense.
One-off gains moderation explicit
DowngradeSR gains ₹86 Cr Q1 vs ₹338 Cr Q1 FY26 (-75%). Treasury income lower. Management reframes as core earnings engine taking over—healthy but implies reported earnings will moderate YoY.
Retail growth ambition confirmed but delayed
NeutralStill targeting mid-teens by FY27 on disbursement momentum (27.5% YoY), but book growth remains flat-to-7% due to run-off. 3-4Q lag acknowledged.
ROA aspiration sustained but Q1 below target
NeutralGuidance for FY27 full-year ~1%, but Q1 came in at 0.9%. Q2-Q4 must strengthen sequentially. Management confident (15-20 bps core ROA expansion guidance) but not yet proven.
Asset quality narrative upgraded
UpgradeRetail slippages lowest in 10Q (1.4% gross vs 1.6% prior Q, 2.4% Q1 FY26). GNPA/NNPA at 1.3%/0.2%. Platform, scorecard, policy refresh yielding results.
The Q&A
Q&A was rigorous but not adversarial. Analysts pressed on NIM drivers, retail growth lag, SR volatility, capital raise dilution. Management answered directly—transparent on margin headwinds (rate cuts on par, deposit competition), honest on retail book lag (3-4Q til disbursement flows), candid on SR timing unpredictability. Held firm on 15-17% loan growth guidance and 1% ROA aspiration but caveated both. No evasion detected; tone was cautious, not defensive.
Loan growth guidance — Dev Dey, HorsePower Securities
AnsweredEndeavor to grow at 15-17%, slightly above industry, in line with funding resources and liquidity comfort.
FCNR deposits & leverage — M.B. Mahesh, Kotak Securities
AnsweredStrong demand on both pure deposits and leverage. Leverage at 9x currently, limits from international banks (including SMBC) being set for 3-5yr commitments. Global liquidity and geopolitical factors slow process; macro spreads higher.
NIM margin improvement — M.B. Mahesh, Kotak Securities
AnsweredCost of Deposits down substantially since April (no attrition), better pricing power. Selecting higher-yield assets. North of 3% achievable by FY28. Structural climb, not straight-line given rate cuts now on par and deposit competition intense.
CASA deposit ratio lag — Narendra Porwal, Individual Investor
Partial[Dr. Rajan Pental] Will definitely work on this suggestion. Acknowledged pain point.
Advances-Deposits CD ratio — Sajal Raj, Zenflow Finance
AnsweredOn daily average balance basis, CD ratio stable (June vs March). Liability-led Balance Sheet expansion is core principle. Focus on CASA, branch-led retail deposits. Best cost-of-deposits outcome vs industry in 3 years.
SR recovery volatility — Shreyas Pimple, Nomura
AnsweredFace value SR outstanding ₹1,500 Cr, NAV ₹2,000+ Cr. Recoveries unpredictable as function of J.C. Flower execution timing. Maintain FY27 guidance ₹800-1000 Cr but caveat it's contingent on J.C. Flower pace.
One-off interest income NIM adjustment — Shreyas Pimple, Nomura
AnsweredInterest on tax refund is part of Non-Interest Income, not NII. No adjustment to NII. NIM stable Q-o-Q.
Capital raise and shareholder dilution — Jai Mundhra, ICICI Securities
AnsweredEnabling resolution only, not event-triggered. 14% CET-1 is reasonable for next 4 quarters of growth. Can grow 12-13% RWA without capital consumption (due to DTA). When raised, will do in 13% CET-1 handle (vs prior 11%). No provision for court case as of now.
Retail growth and loan book trajectory — Jai Mundhra, ICICI Securities
Partial[Dr. Rajan Pental] Retail on strong wicket (slippages controlled, platform refreshed). Incremental fresh business growing 25-30% depending on segment. Portfolio was flat, takes time to reflect. Will reach mid-teens by FY27, yes.
Recovery guidance FY27 — Jai Mundhra, ICICI Securities
AnsweredCorporate resolutions behind us. J.C. Flower ARC is focus: ₹800-1000 Cr expected FY27. Retail recoveries now netted in NPA. Core ROA focus: expect 15-20 bps expansion FY27 plus external factors (bond, trading) should deliver 1% reported ROA.
ECL transition impact — Jai Mundhra, ICICI Securities
PartialNot yet publicly disclosed. ECL has offset from Security Receipts; if allowed, no net impact. But ECL adj for SR will flow through P&L (not Balance Sheet). New credit RWA circular also coming Apr 1. Combined, impact expected immaterial on core equity. Will disclose later.
Commercial Banking stress (Max situation) — Shreyanth KT, Sundaram Asset Management
Answered[Manish Jain] Portfolio of high quality, slippages controlled Q1. Very limited impact from West Asia war; clients managed crisis well.
Retail product strategy & disbursements — Shreyanth KT, Sundaram Asset Management
AnsweredSeasonality (March high, co-lending). Y-o-Y disbursement growth ~30%. Multi-product approach: Personal Loans, LAP, franchise products (Home, Auto), co-lending. 75-25 secured-unsecured ratio guardrail. Expect double-digit book growth in 3-4 quarters as run-off tapers.
Capital raise shareholder value protection — Rama Subbareddy, Individual Investor
Partial[Niranjan Banodkar] Enabling resolution only; no imminent trigger. Delivered ROA 1% FY26 exit; improving. Will grow at 12-13% RWA without capital consumption (DTA benefit). Levers to preserve shareholder value. Understand shareholder patience—raising capital when beneficial for growth and value creation.
Indo-Japanese business corridor opportunity — Sunil Choksey, Indus Equity Advisors
Partial[Vinay M. Tonse] Indo-Japanese corridor strengthening, especially post inter-govt meetings. Already working on MOUs with SMBC. Endeavor to route max corridor business through YES Bank. Specific confidential details not shared. Trade, investment, infra investment all areas of focus.
FCNR leverage vs straight deposit mix — Sunil Choksey, Indus Equity Advisors
Answered9x leverage max currently. Strong deposit interest from Eastern geographies. Pure FCNR (B) deposits growing well, no constraint. Leverage component depends on limits from international bank partners.
Guidance
Loan growth 15-17% FY27 (on average balance basis)
HighHeadline 18.3% inflated by transient shorter-tenure corporate advances. Management comfortable with 15-16% average range, in line with industry or slightly ahead.
Top-line revenue to accelerate as loan growth materializes
MediumQ1 revenue only +5.9% YoY vs loan growth 15-16%. Gap due to NIM compression. Depends on margin expansion levers (RIDF rundown, cost discipline) taking effect.
NIM aspiration 3%+ over next 2 years (vs 2.7% current)
MediumLevers: RIDF rundown ₹6500-9000 Cr, Priority Sector Deposit repricing, improving CASA mix. Caveated as 'steady structural climb'—rate cuts now on par, deposit competition intense.
Core profitability expansion 25-50 bps (vs FY26 baseline)
MediumCore ROA improvement expected 15-20 bps FY27. Depends on sustained cost discipline and stable asset quality.
No explicit capex guidance; focus on liability-led balance sheet growth
HighBank emphasizes deposit franchise deepening, branch-led retail growth, SMBC-led product development rather than capex-intensive expansion.
Risks the call surfaced
Revenue growth lag
HighRevenue only +5.9% YoY while loans grow 15-16%. Despite deposit cost declining, yields hit by rate cuts and rate-sensitive mix. NIM aspiration 3%+ pushed to 2-year horizon vs prior medium-term guidance.
Retail loan growth execution
MediumRetail advances only 6.9% YoY despite 27.5% disbursement growth. Management explains run-off from prior slowdown (FY23-25) but book growth remains flat. Expects 3-4Q lag for disbursements to flow to accruals.
One-off earnings moderation
MediumSecurity Receipts gains down 75% YoY (₹86 Cr vs ₹338 Cr), tax refund ₹119 Cr one-off in Q1. Management reframes as core business taking over, but reported earnings will face headwind unless core profitability accelerates faster.
Sequential momentum concerns
MediumPAT ₹1,072 Cr flat vs Q4 FY26 (-1% QoQ). Strong YoY comp masks absence of sequential growth. If Q2-Q4 don't accelerate, full-year guidance (1% ROA) may miss.
Capital adequacy optionality pressure
LowCET-1 14% vs higher peer levels. Board approval for ₹16,000 Cr raise is enabling only, but potential future dilution. Management emphasizes DTA benefits allow 12-13% RWA growth without capital burn, but peers higher.
Management
Score 7/10. Clear and candid. MD provided detailed macro context (16.4% tax growth, 1.95L GST, 37-month manufacturing expansion). Direct on headwinds (rate cuts on par, deposit competition, NIM expansion caveated). Transparent on asset quality improvement and SR volatility. Some hedging on forward guidance but justified by macro uncertainty. Strong track record on cost discipline (CTC improved 430 bps to 62.8%). Asset quality best in 10Q on retail. Met loan growth guidance on average basis. But revenue growth severely lagging loan growth (5.9% vs 15-16%), suggesting pricing or mix challenges. Margin aspiration pushed from medium-term to 2 years. ROA 0.9% Q1 vs 1% exit FY26.
1 · Q2-Q4 FY27
Retail disbursement momentum (27.5% YoY) to translate to book growth; run-off tail winds
2 · FY27 full-year
RIDF rundown ₹6500-9000 Cr supports NIM expansion toward 3% target
3 · FY28
Expected Credit Loss transition; new credit RWA circular; management expects no material impact
Bank is on recovery path but quarterly delivery doesn't yet validate forward optimism.
PAT Surge Masks Revenue Stall—The Margin Compression Story
Net profit jumped 32.5%, but revenue grew just 5.9% YoY while loans expanded 15–16%. The quarter is what it is: a recovery on better credit costs, one-offs, and deposit discipline—but the core revenue engine is broken, and management has now extended its margin expansion timeline from medium-term to two years.
₹2,786 Cr
+17.5% YoY
₹8,055 Cr
+5.9% YoY
NII +17.5%
but Revenue only +5.9%
15–16% YoY
Headline 18.3% (transient)
YES Bank's Q1 PAT of ₹1,072 Cr (+32.5% YoY) landed cleanly on management's guidance, which is why the stock sold off 2.88% the day after the result. But the profit growth masks a deeper tension: the bank expanded loans at 15–16% on an average-balance basis yet generated revenue growth of only 5.9%. That gap—the core story of the quarter—reveals structural Net Interest Margin compression that even aggressive deposit cost discipline cannot overcome.
Where the profit really came from
Dig into the earnings composition and the PAT recovery is less organic than headline growth suggests. Net Interest Income rose a healthy 17.5% to ₹2,786 Cr, but this was offset by a 75% collapse in Security Receipts gains (₹86 Cr in Q1 FY27 vs. ₹338 Cr in Q1 FY26). Management also benefited from a ₹119 Cr one-off interest income on a tax refund, a non-recurring tailwind. Strip out the one-offs and improve deposit costs, and the picture becomes clearer: YES Bank is running a deposit-cost-discipline playbook to prop up profitability while its loan book grows faster than its loan yield can support.
The PAT recovery is genuine but composite. Operating leverage from a 430-basis-point improvement in the cost-to-income ratio (to 62.8% from 67.1% YoY) added ~₹140–150 Cr of incremental profit. Credit recoveries and steady slippage discipline (retail slippages at a 10-quarter low of 1.4%) contributed another ₹60–80 Cr. But the underlying revenue base is struggling: if loans are growing at 15–16% yet revenue grows at 5.9%, the NIM—at 2.7%—is compressing, not expanding. Management's deposit cost reductions are barely holding it flat.
Net Profit grew 33.7% YoY to ₹1,071 Cr
Delivered PAT ₹1,071.8 Cr, YoY growth 32.5%
Slightly overstated
Loan growth in 15–17% range on average basis
Headline 18.3%; average balance 15–16%, transient corporate growth
Supported
NIM improved 20 bps YoY to 2.7%, aspiration 3%+ over 2 years
NIM 2.7% held flat Q-o-Q; rate cuts on par, deposit competition intense
Supported, but timeline extended
SR gains ₹86 Cr; maintain FY27 guidance ₹800–1000 Cr
Down 75% vs Q1 FY26; J.C. Flower timing volatile; guidance caveated
Supported
Retail disbursements growing 27.5% YoY; trajectory to mid-teens by FY27
Retail advances only 6.9% YoY; run-off lag, expects 3–4Q until book reflects
Partial
ROA 0.9% Q1, aspiration full-year FY27 around 1%
Below FY26 exit at 1%; must strengthen Q2–Q4 sequentially
Partial
What changed on this call
Margin expansion timeline extended. Prior guidance aspired to 3.25–3.5% NIM on a medium-term basis. Management now frames the target as 3%+ achievable over the next two years, explicitly caveating it as a 'steady structural climb' not a quarter-to-quarter march. Why the hedge? Rate cuts are now on par (no more easy tailwinds from RBI), and deposit competition has intensified sharply. RIDF rundown (₹6,500–9,000 Cr FY27) and improved CASA mix will help, but the math is tighter than previously assumed.
One-off gains moderation made explicit. Security Receipts gains collapsed 75% YoY. Management candidly reframed this as the transition from a one-off-heavy earnings base to a core-business-driven model—intellectually sound, but it signals reported earnings will face a headwind unless core profitability accelerates faster than currently underway.
Retail growth ambition confirmed but delayed. The bank still targets mid-teens retail growth by FY27 end on disbursement momentum (27.5% YoY). But retail advances are up only 6.9%, a gap management attributes to run-off from FY23–25 portfolio slowdown. The 3–4 quarter lag to book recognition is credible but unproven—and it means near-term delivery is lower than the headline disbursement number suggests.
Asset quality upgraded. Retail slippages hit a 10-quarter low; GNPA and NNPA improved. This is genuine and supports the quality narrative—the one bright spot in an otherwise structurally challenged profitability picture.
Asset quality at 10-quarter best; retail slippages controlled
Cost discipline genuine (430-bps CTC improvement); operating leverage proved
Deposit franchise granularizing (60% retail/branch-led); CASA growth 14.3% YoY
SMBC partnership opening Indo-Japanese business corridor
Revenue growth (5.9%) severely lags loan growth (15–16%)
NIM guidance extended to 2 years; rate cuts on par, competition intense
One-off gains collapsing (SR -75%); reported earnings face headwind
Retail book growth (6.9%) vs. disbursement (27.5%); 3–4Q lag unproven
QoQ PAT flat (-1%); sequential momentum absent despite guidance
ROA 0.9% below 1% exit and FY27 aspiration; must strengthen Q2–Q4
Revenue growth severely lagging loan growth (5.9% vs. 15–16%)
HighSignals structural NIM compression. Despite deposit cost discipline, yields are falling faster than deposit costs are falling. RIDF rundown and rate cuts being on par mechanically limit expansion upside. NIM aspiration pushed to 2 years.
Retail book growth lag vs. disbursement pipeline (6.9% book vs. 27.5% disbursement YoY)
MediumHuge disconnect. 3–4Q lag is credible but unproven. If run-off persists or disbursement conversion slips, retail growth trajectory will miss the mid-teens target by FY27 end.
One-off gains moderation explicit (SR -75% YoY)
MediumReported earnings will face headwind unless core profitability accelerates. Management reframes as healthy (core business taking over), but delivered Q1 revenue is weak and sequential PAT is flat.
Sequential momentum absent (Q1 QoQ PAT -1%)
MediumStrong YoY comp masks lack of sequential growth. If Q2–Q4 don't accelerate, full-year 1% ROA guidance may miss. Management expects 15–20 bps core ROA expansion but hasn't yet proved it.
Capital adequacy and dilution optionality (enabling ₹16,000 Cr capital raise approved)
LowCET-1 14% vs. peer highs; enabling only, not imminent. DTA benefits allow 12–13% RWA growth without capital burn. But future dilution risk if raised at lower valuations.
1 · Q2–Q4 revenue growth trajectory
If revenue growth remains below 8% through Q2–Q3, NIM expansion becomes a 2–3 year story, not 1 year. The margin expansion playbook (RIDF rundown, CASA mix, cost discipline) is credible but depends on revenue not falling further behind loan growth.
2 · Retail book growth inflection
Monitor retail advances growth in Q2–Q3. If it remains <8% despite 27% disbursement YoY, the 3–4Q lag explanation weakens and execution risk rises. This is the near-term catalyst test.
3 · Sequential ROA and NIM progression
Q2 ROA must be ≥0.95% (not just 0.9%) and NIM must show even 5–10 bps sequential movement for management's full-year 1% ROA and 3%+ NIM (2-year) guidance to hold credibility.
4 · SMBC FCNR corridor materialization
Indo-Japanese MOUs are early stage. Any concrete deal flow, trade-finance pipeline, or infrastructure financing wins in Q2 would offer a fresh earnings upside lever—currently immaterial but strategically significant.
How the street is positioned
The stock's 2.88% sell-off on day 1 post-result, holding into a 1.57% decline by day 3, tells the real story: the street acknowledged the PAT recovery but voted with its feet on the revenue weakness. At ₹22.95, YES Bank is trading below its 50-day (₹23.44) and 20-day (₹23.77) moving averages, though above its 200-day at ₹21.85. The stock is 10.98% below its all-time high of ₹25.78 and 33.43% above its 52-week low, placing it in a mid-range recovery zone. RSI at 30.2 signals neutral positioning—not oversold.
Institutional flows tell a different story than price action. Foreign Institutional Investors (FII) have been consistent accumulators, ramping ownership from 24.95% in Q1 FY26 to 46.42% as of Q4 FY26—a 21.5 percentage-point build. The post-result quarter-on-quarter change of +0.69 percentage points suggests FII continued to nibble, but not aggressively in the wake of the weak revenue print. Domestic Institutional Investors maintained steady ownership at ~21.8%, adding 0.68 percentage points. The divergence between FII accumulation (14-quarter trend) and the post-result price reaction (sell-off) suggests institutional investors are valuing the recovery trajectory differently than price momentum traders. But the modest post-result FII addition (+0.69pp) indicates even long-term buyers are pausing to assess whether NIM expansion will actually materialize.
The honest read
YES Bank is not in distress. Asset quality is best in 10 quarters, deposit franchise is genuinely granularizing, and cost discipline is real. But the quarter reveals a bank in a slow, steady recovery—not a step-change. The PAT recovery is authentic but composite: it leans on credit cost discipline and one-off gains that are now moderating. The core issue is architectural: loan growth at 15–16% YoY combined with revenue growth of 5.9% YoY points to either portfolio mix drift toward lower-margin lending (more retail co-lending, less corporate) or yield compression from rate cuts that deposit cost reductions cannot offset. Management's decision to extend NIM aspiration from medium-term to 2 years is prudent and candid—it reflects the macro reality that rate cuts are on par and competition is intense.
The three concrete things to track are revenue growth (must accelerate above 8% to validate the loan growth story), retail book growth inflection (must move above 10% by Q3 if the disbursement lag is real), and sequential ROA progression (must show month-on-month stiffening toward 1%). Until those three normalize, YES Bank remains a steady-state recovery story—credible but not compelling.
Rating: Hold. Confidence: Medium. YES Bank has earned trust on asset quality and deposit discipline. But it hasn't yet proved it can marry 15%+ loan growth with meaningful revenue acceleration in a low-rate environment. The stock's post-result sell-off (FII nibbling notwithstanding) suggests the street agrees: recovery is underway, but not yet a catalyst. The single number to track from here is revenue growth rate. If it exceeds 8% by Q3 FY27, NIM expansion becomes achievable and the 1% ROA aspiration holds. If it stays below 7%, the 2-year NIM timeline becomes credible but the near-term story softens further.
YES Bank Q1: consolidated PAT ₹1,072 Cr, +33% YoY on margin gains & lower tax; flat QoQ
PAT +32.54% YoY · revenue +5.91% · margins expanding · beat vs street
₹8,054.49 Cr
+5.91% YoY
₹1,071.8 Cr
+32.54% YoY
10.8%
+2.2pp YoY
₹0.34
YES Bank reported a margin-led June quarter. Consolidated net profit rose ~32.5% YoY to ₹1,072 Cr on interest income of ₹8,054 Cr (+5.9% YoY) and total income of ₹9,925 Cr; net interest income of ₹2,785 Cr beat the Street's ₹2,712 Cr (Kotak) estimate. Net interest margin expanded meaningfully year-on-year, lifting net profit margin to 10.8% (from 8.6% a year ago) and the OPM proxy to 21.2% (from 18.0%). Sequentially, however, the print was flat-to-soft — PAT slipped ~1% versus Q4's ₹1,082 Cr and NPM eased from 11.4% — so the story is YoY recovery, not fresh momentum.
Q1 FY-2027 vs prior quarters
A large part of the profit jump is below the operating line: pre-tax profit grew a more modest ~20.9% YoY, and the effective tax rate dropped to 18.2% (from ~25.4%), so tax-normalised PAT growth is closer to ~21%. Provisions also rose sharply — ₹394 Cr versus ₹188 Cr in Q4 and ₹284 Cr a year ago — trimming what would otherwise have been stronger operating flow-through, even as asset quality improved (GNPA 1.3% vs 1.6% YoY, NNPA 0.2%). Advances of ₹2.85 tn (+18.4% YoY, +4.3% QoQ) confirm the strong loan momentum flagged in the July 3 provisional update.
The stock went into the print at ₹23.61, down 6% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters; revenue is at a 6-quarter high.
What the summary numbers don't show
Board separately cleared fund-raising of up to ₹16,000 Cr (June 29) — ₹728 Cr IFR moved to P&L reserves; ₹879 Cr tax refund and AT-1 bond SLP still pending.
Management guides for loan growth to accelerate to 13-15% in FY27, in line with the industry, after seeing strong sequential momentum. They project continued margin expansion, supported by a significant RIDF rundown of INR 6,500-9,000 crores and disciplined cost of funds management, with a medium-term NIM target of 3.2
— This quarter: met
Versus the last concall, management's bullish framing is broadly borne out on growth (loan growth well ahead of the 13-15% FY27 guide) and YoY margins, but the key 1% ROA objective slipped to 0.9% this quarter and credit costs stepped up — the two watch-points against its 'sustain 1% ROA on low credit costs' guidance. The result lands alongside the board's June 29 approval to raise up to ₹16,000 Cr and the pending ₹879 Cr tax-refund and AT-1 bond matters (SLP reserved for Supreme Court judgment), any of which could move future reported numbers. Standalone PAT (₹1,071 Cr) is effectively identical to consolidated, so basis makes no difference to the read.
What to watch
W1
ROA back to the guided 1%: it slipped to 0.9% this quarter versus management's 'sustain 1% ROA' objective.
W2
Credit costs: provisions doubled QoQ to ₹394 Cr — whether this normalises or signals rising slippage next quarter.
W3
Tax-rate normalisation: the 18.2% effective rate (vs ~25%) flattered PAT; a reversion would compress reported growth even if core profit holds.
Source in ₹ Lakhs, converted to Cr (÷100). Bank format: revenueFromOperations = interest earned; totalExpenses includes provisions & contingencies (₹394.48 Cr consol) so totalIncome−totalExpenses = PBT. Minority interest negligible (₹0.01 Cr); consol PAT before minority ₹1071.81 Cr. No exceptional items either period. Effective tax rate fell to 18.2% (vs ~25.4% YoY/25.3% QoQ) — tax tailwind (other income incl. interest on income-tax refund) inflates PAT growth above PBT growth. Note 15: ₹728 Cr IFR transferred to P&L reserves (balance-sheet, not income). Separate ₹879 Cr tax-refund matter pending. AT-1 bond SLP reserved for Supreme Court judgment.