Financial Performance Highlights

Profitability Metrics:

  • Net profit for Q1 FY27: ₹1,324 crores, increased by 13.26% year-on-year
  • Operating profit: ₹2,186 crores
  • Net interest income: ₹3,914 crores, grew by 15.70% YoY
  • Total income: ₹10,678 crores, improved by 3.08%
  • Return on Assets (ROA): 1%
  • Return on Equity (ROE): 14.92% (improved from 14.17%)
  • Cost-to-income ratio: 55.40% (compared to 55.30% in June '25 quarter)

Business Growth:

  • Total global business: ₹833,320 crores, grew by 18.29%
  • Gross global advances: ₹3,54,348 crores, increased by 28.58%
  • Deposits: ₹478,972 crores, increased by 11.68%
  • CASA ratio: 46.61% of total deposits
  • Savings account deposit growth: 11.66%
  • Total CASA growth: 11.16% YoY
  • CD ratio: Improved to 74.10% (from 64% in June '25)

Asset Quality:

  • Gross NPA: 2.60% (improvement of 53 basis points YoY)
  • Net NPA: 0.49%
  • Provision Coverage Ratio (PCR): Approximately 95.86%
  • Slippage ratio: 0.29% (improvement of 6 basis points)
  • Credit cost: 0.40% (improved from 0.68% previous quarter)

Capital Adequacy:

  • CRAR: 18.28%
  • Tier 1 capital: 16.54%
  • CET1: 16.24%

Segment-wise Performance

RAM Sector Performance (Retail, Agriculture, MSME):

  • RAM sector growth: 21.38%
  • Retail advances: ₹1,05,523 crores, grown by 23.92%
  • Agriculture advances: ₹64,274 crores, grown by 21.14%
  • MSME advances: ₹71,308 crores, grown by 18.03%
  • RAM to Corporate Credit ratio: 68:32

Corporate Banking:

  • Corporate loan book: ₹1,12,770 crores (grown from ₹76,966 crores in June '25, representing 46.52% growth)
  • Major growth areas: Renewable energy, data centers, HAM projects, CRE

Strategic Initiatives & Business Updates

New Branch Opening:

  • Opened new branch at GIFT City, Gandhinagar, Gujarat on 29th June 2026
  • Platform for overseas business development

Network Strength:

  • 22,346 touch points across India
  • 4,605 branches (65% in rural and semi-urban areas)
  • 1 IFSC Banking Unit
  • 3,820 ATMs
  • 13,890 BC outlets
  • 30 BC MaXX Centres

Priority Sector Performance:

  • Priority sector achievement: 58% against mandated 40%
  • Advances to small and marginal farmers: 11% (exceeding 10% mandate)
  • Micro enterprises: 15% (exceeding 7.5% regulatory threshold)

Digital & Operational Initiatives:

  • 1,000 credit officers undergoing specialized training to join in first week of October 2026
  • Plans to open more corporate finance and mid-corporate branches
  • Centralized BG cell and centralized forex cell operational
  • 159 NRI desks across branches
  • Hired 300 marketing officers
  • Opened 35 customer acquisition centres
  • Opened 9 government business centres

Deposit Products Performance:

  • Cent Queen product: ₹1,457 crores mobilized
  • Salary Cent Prestige: ₹787 crores mobilized
  • 85% of deposits under ₹3 crores segment (retail deposits)

Treasury & Investment

  • Treasury income: ₹276 crores (lower due to market conditions)

ECL Provisions

  • ECL provisions made: ₹1,525 crores for Stage 1 and Stage 2
  • Total ECL requirement estimated: ₹4,500-5,000 crores
  • Expected impact if accounted at once: 80 basis points on CRAR
  • Planned transition to ECL from 1st April 2027

Recovery & Asset Monetization

  • Technical written-off book: ₹32,900+ crores in PT and ₹9,200+ crores in normal books
  • Expected recovery FY27: ₹2,200-2,500 crores from technically written-off accounts
  • Specific recovery expectations: ₹235 crores through OTS/liquidation, ₹200 crores from NCLT, ₹500 crores from written-off accounts in current quarter
  • Q1 recovery actions: Sold property and approved OTS in 121 cases out of 810 properties auctioned
  • FY27 target: Sell 600-700 properties (vs. 460 properties last financial year)
  • Using property expos and property consultants for enhanced visibility

Capital Raising Plans

  • Board approved raising up to ₹7,000 crores via equity or BASEL III instruments
  • Current capital deemed sufficient to support growth guidance
  • No immediate plans for capital raising

Liquidity Metrics

  • Liquidity Coverage Ratio (LCR): 156% (reduced from 235%, but above regulatory requirements)
  • Net Stable Funding Ratio (NSFR): 128% (reduced from 147%, but above regulatory requirements)
  • Reduction attributed to optimal deployment of resources and CD ratio improvement

Special Schemes Performance

FCNR Deposits:

  • Mobilized thus far: USD 8.4 million
  • Expected mobilization by September 2026: USD 400 million

ECLGS Scheme:

  • Applications sanctioned: 34,824 accounts of ₹4,646 crores
  • Guarantee issued: 30,561 accounts of ₹4,353 crores
  • Disbursement: 27,567 accounts of ₹3,693 crores

Yield & Pricing

  • Overall yield on advances: 7.89% (improved from 7.78%)
  • Target yield by March 2027: 8%
  • Gold loan yield: 8%+
  • SHG yield: 8%+
  • Gold loan structure: Agriculture gold loans MCLR-linked, retail gold loans non-MCLR linked

Cost Management Initiatives

  • Focus on improving non-interest income through centralized forex cell, BG cell, exporter meets
  • Bancassurance business expected to contribute significantly
  • Marketing/sales department with 35 customer acquisition centres and 9 government business centres
  • Cost curtailment measures: Optimal cash retention, ATM utilization, currency chest optimization, land bank utilization, expenditure control
  • Target to reduce cost-to-income ratio by 1.5-1.6%

New Business Verticals

  • Board approval for wealth management vertical, credit card vertical, NRI and marketing vertical
  • Planning entry into credit card segment leveraging 8.33 crores customer base

GIFT City Business Plans

  • Current disbursement: ₹470 crores
  • Future targets: USD 200 million deposits and USD 500 million trade book over next few years

Insurance Ventures

  • Bank holds 26% stake in both Generali Central Life Insurance and Generali Central Non-Life Insurance
  • Total capital invested: ₹627 crores
  • Expecting good income from both businesses in current year

Segment Results Variation

  • Treasury income: ₹621 crores vs ₹353 crores (attributed to market conditions)
  • Retail book profit: ₹1,377 crores vs ₹633 crores
  • Wholesale book: minus ₹139 crores vs profit of ₹284 crores
  • Unallocated: minus ₹75 crores vs profit of ₹322 crores
  • Management indicated changes reflect realistic business performance rather than provisioning imbalances

Growth Guidance & Outlook

  • Deposit growth guidance: 11-12%
  • Advances growth guidance: 14-16%
  • NIM guidance: 3% and above
  • ROA guidance: 1% and above
  • Confident of achieving and exceeding guidance numbers
  • Targeting quarterly growth of approximately 3%