Key Financial Performance Highlights

Business Growth:

  • Total business crossed INR7 lakh crore for the first time
  • Business growth of 25% YoY
  • Advances growth of 30% YoY
  • Domestic credit growth (excluding IBU) at 23% YoY
  • Deposit growth of 22% YoY (19% excluding FCNR(B))
  • CASA growth of 12% YoY with INR19,000 crore absolute addition over last FY

Asset Quality:

  • GNPA reduced by 47 bps to 1.25%
  • NNPA reduced by 6 bps to 0.12%
  • Provision coverage ratio at 98.53%
  • Overall stress reduced by 167 bps YoY from 4.93% to 3.26%
  • SMA 1 and 2 portfolio reduced by 50 bps to 1.37%
  • Above INR5 crore stress at 0.13% (0.11% excluding one state account)

Profitability Metrics:

  • Net profit growth of 41% YoY
  • Operating profit growth of 31% YoY
  • ROE improved by 440 bps to 26.98%
  • NIM improved by 12 bps to 3.97%
  • ROA improved by 20 bps to 2.02%
  • Global yield on advances at 8.86%
  • Domestic yield on advances at 9.02%

Capital Adequacy:

  • CET1 at 15.61%
  • CRAR at 18.51%
  • LCR at 123%
  • NSFR at 127%

Segment-wise Performance

Credit Growth Breakdown:

  • Retail, Agri, MSME verticals all grew over 20% individually
  • Large corporate credit growth of 38% YoY (INR36,000 crore)
  • GIFT City IBU contributed INR18,000 crore to large credit growth
  • Domestic large credit growth of 19% YoY (INR18,000 crore)

Agriculture Portfolio:

  • Agri gold loan outstanding: INR18,600 crore (from INR6,500 crore in September 2025)
  • Total gold loan outstanding: INR33,000 crore
  • MSME gold loan outstanding: INR2,000 crore
  • Agri stress improved by 35 bps to 3.51%

ECLGS Disbursement:

  • Total ECLGS disbursement: INR4,493 crore
  • Agriculture: INR530 crore
  • MSME: INR3,300 crore
  • Corporate: INR577 crore

Funding and Cost Management

Cost Metrics:

  • Cost of deposits reduced by 4 bps YoY to 4.38%
  • Cost of funds reduced by 25 bps to 4.07%
  • Outstanding refinance book: INR18,300 crore (6-6.5% cost)
  • Infrastructure bonds outstanding: INR2,400 crore

Foreign Currency Funding:

  • FCNR(B) mobilization: $820 million
  • IBU loan: $760 million
  • Leverage from IBU: $560 million
  • OFCB raised at 6.11% fixed for 5 years
  • First foreign bond issuance with 3x subscription

Provisions and Write-off Recovery

Provisioning Details:

  • NPA provisions reduced from INR580 crore to INR120 crore
  • Standard asset provisions increased from INR158 crore to INR603 crore
  • ECL provisioning of INR500 crore this quarter
  • Total ECL provisioning requirement: INR2,500 crore over 4 years
  • ECL provision already done: INR750 crore (covering FY27-28 requirement)
  • Global uncertainties provision: INR200 crore
  • Total surplus provisions: INR1,600-1,800 crore

Write-off Recovery:

  • Q2 recovery from written-off accounts: INR737 crore (vs INR305 crore last quarter)
  • Debt waiver recovery contribution: INR422 crore
  • Total write-off book: INR21,500 crore
  • NCLT cases: 151 cases, INR7,500 crore involved (147 cases admitted)
  • Annual recovery target: INR1,300-1,500 crore for next 4-5 years
  • Recovery impact on NIM: 2-3 bps

Maharashtra Debt Waiver Scheme

  • Eligible portfolio: INR3,500 crore
  • Government receivable: INR2,750 crore
  • Received till September: INR1,200 crore
  • Received on 1st October: INR115 crore
  • Total provisioning held: INR1,700 crore
  • Expected haircut: INR500 crore
  • Deadline for claims: 31st March 2027

Business Outlook and Guidance

Credit Pipeline:

  • Current pipeline: INR23,000 crore
  • Expected disbursement by March 2027: INR10,000 crore
  • Sector distribution: Infra power (18%), road projects (12%), renewable energy (10%), metals (10%)

Branch Expansion:

  • 200 branches annually being opened
  • 77 branches made functional in H1 FY27
  • Employee strength increased from 13,000 to 17,500 in 2 years

Technology Investment:

  • FY24-25 IT budget: INR900 crore
  • FY25-26 IT budget: INR985 crore
  • Focus on cybersecurity and digital preparedness

Drought Impact and Restructuring

  • No visible stress currently in agriculture book
  • SLBC approved restructuring framework for drought-affected areas
  • Crop loss 33-50%: 1-year moratorium + 3-year repayment
  • Crop loss >50%: 1-year moratorium + 5-year repayment
  • Application window open until February 2027
  • Historical experience: 10-15% uptake with 5% provisioning
  • Scheme applies only to agriculture loans (term and crop loans)

Management Commentary

  • Guidance numbers consistently being met across all metrics
  • Focus on profitable growth with branch-level profitability monitoring
  • Emphasis on secured lending (gold loans) in agriculture
  • Collaboration with NaBFID for large infrastructure projects
  • Maintaining strong compliance and regulatory comfort
  • Target to maintain credit growth above 18% guidance