Key Financial Figures (Q2 FY27)

  • Net Profit: ₹622 crores (5.5x YoY growth, 23.9% QoQ growth)
  • Net Interest Income (NII): ₹2,960 crores (14.4% YoY growth, 1.4% QoQ growth)
  • Net Total Income: ₹3,655 crores (17% YoY growth)
  • Operating Profit: ₹1,556 crores (18.8% YoY growth, 14.6% QoQ growth)
  • Net Interest Margin (NIM): 6.1% (broadly stable from 6.2% in Q1)
  • Return on Assets (ROA): 1.2% (vs 0.2% in Q2 FY26)
  • Return on Equity (ROE): 9.3% (vs 1.8% in Q2 FY26)
  • Credit Cost: 1.8% (broadly stable sequentially)
  • Provision Coverage Ratio: 71.2% (74.3% including provision against SRs)

Key Financial Figures (H1 FY27)

  • Net Profit: ₹1,123 crores (132% YoY growth)
  • Net Interest Income (NII): ₹5,881 crores
  • Net Total Revenue: ₹7,190 crores
  • Operating Profit: ₹2,915 crores
  • Annualized ROA: 1.1%
  • Annualized ROE: 8.5%

Balance Sheet Position (as of September 30, 2026)

  • Gross Advances: ₹1.58 lakh crores (13.1% YoY growth, 1.8% QoQ growth)
  • Total Deposits: ₹1.73 lakh crores (9.2% YoY growth, 4.7% QoQ growth)
  • Net Credit-Deposit Ratio: 89.5% (down from ~92% in previous quarter)
  • CASA Balance: ₹46,132 crores (4.3% YoY growth)
  • CASA Ratio: 26.7%
  • Retail Term Deposits: 16.8% YoY growth
  • Retail Deposits Contribution: 72.7% of total deposits
  • Capital Adequacy Ratio: 18.3% (Tier 1 capital at 17.7%)

Business Performance and Portfolio Mix

  • Non-EEB Business Growth: 19.8% YoY (now represents 66.7% of total advances)
  • EEB Portfolio: ₹52,616 crores (1.7% YoY growth, sequential decline arrested)
  • Secured Portfolio: 57.3% of total advances (up from 54.9% a year ago, 18% YoY growth)
  • Retail Assets Growth: 41.9% YoY (led by commercial vehicles, construction equipment, auto and gold loans)
  • Wholesale Banking Growth: 31.6% YoY
  • Portfolio Composition: EEB group lending (22%), SBAL (11%), Wholesale Banking (34%), housing finance (22%), retail and other loans (11%)

Asset Quality Metrics

  • Gross NPA: 3.1%
  • Net NPA: 0.9%
  • Gross Slippages: ₹1,125 crores (vs ₹1,079 crores in Q1)
  • EEB Slippages: ₹655 crores
  • Recoveries and Upgrades: ₹481 crores (vs ₹449 crores in Q1)
  • Write-offs: ₹607 crores (₹424 crores related to EEB portfolio)
  • Collection Efficiency (Bank level): 99.4% (improved 36 bps QoQ)
  • EEB Collection Efficiency: 99.3% (improved from 98.9% in Q1)
  • EEB DPD Pool: 2.9% (improved from 3.5% in previous quarter)
  • EEB DPD Amount: ₹1,529 crores (declined 17% sequentially from ₹1,842 crores)

Strategic Developments

  • Credit Card Launch: Introduced four variants (Sparks, Ignite, Flare, Lumina) targeting different customer segments
  • Branch Expansion: Added 13 new branches and 14 banking units (total 2,001 branches and 4,414 banking units)
  • Digital Initiatives: mBandhan app enhancement with new features for Gen Z and affluent segments
  • Housing Business Restructuring: Verticalization of structure completed, expected to improve growth trajectory from Q4
  • Liability Strategy: Focus on granular retail deposits rather than bulk funding for structural growth

Management Commentary and Outlook

  • Loan Growth Guidance: Maintained full-year target of ~14%
  • NIM Guidance: Expected to remain in 6.1%-6.2% range
  • ROA Guidance: Medium-term aspiration of 1.6%-1.8% remains unchanged
  • EEB Growth: Expected to achieve 8%-10% growth through Q3 and Q4
  • Operating Expense Guidance: Maintained at 4.2% of total assets
  • PSLC Cost: Expected to be ~₹120 crores for FY27 (running at ~₹31 crores per quarter)

Regulatory and Other Updates

  • ECL Transition Impact: Estimated at ~₹2,200 crores (based on March 2026 flow rates), to be amortized over 5 years through capital
  • Bancassurance Impact: Proposed commission cap regulations may create headwinds, but bank believes its model is relatively well-positioned
  • Repo Rate Impact: ~50% of portfolio is variable-rate and repo-linked; 25 bps rate change would translate to ~10-11 bps impact
  • Portfolio Rate Structure: 48% fixed, 52% variable (49% repo-linked, 3% MCLR)
  • Monsoon Impact: Limited exposure to affected regions (Karnataka 1% of EEB book, Maharashtra 2.6% of EEB book)
  • Assam Flood Moratorium: ₹406 crores brought under moratorium with additional 5% provision; collection efficiency at 99.1%

Participants in Earnings Call

Management Team:

  • Mr. Partha Pratim Sengupta (Managing Director and CEO)
  • Mr. Rajinder Kumar Babbar (Executive Director and Chief Business Officer)
  • Mr. Ratan Kumar Kesh (Executive Director and Chief Operating Officer)
  • Mr. Vinay Jain (Chief Financial Officer)
  • Mr. Vikash Mundhra (Head, Investor Relations)

Analysts Participating:

  • Ankit Bihani (Nomura)
  • Jayant Kharote (Axis Capital)
  • Jai Prakash Mundhra (ICICI Securities)
  • Rahul Kumar (Vaikarya Fund)
  • M.B. Mahesh (Kotak Securities)
  • Jignesh Shial (InCred Capital)
  • Nitin Aggarwal (Motilal Oswal Financial Services)
  • Pritesh Bumb (Elara Securities)