Key Financial Performance Metrics

Profitability:

  • Q2 FY2027 Net Profit: ₹1,469 crore, increased by 21% YoY from ₹1,213 crore in Q2 FY2026
  • Q2 FY2027 Operating Profit: ₹2,268 crore, grew by 27% YoY from ₹1,786 crore
  • Net Interest Income: ₹4,146 crore in Q2 FY2027, growth of 26.28% YoY from ₹3,283 crore
  • Total Income: ₹11,737 crore for Q2 FY2027, improved by approximately 15% YoY
  • Return on Assets (ROA): 1.03%, improved by 3 basis points QoQ
  • Cost-to-Income Ratio: 58.95% for Q2 FY2027 vs 62.42% in Q2 FY2026

Business Growth:

  • Total Business: ₹8,89,541 crore, growth of 20.54% YoY
  • Global Advances: ₹3,81,032 crore, growth of 29.83% YoY
  • Domestic Advances: ₹3,72,939 crore, growth of 27% YoY
  • Domestic Deposits: ₹5,08,509 crore, growth of 14.41% YoY
  • CASA Deposits: ₹2,26,774 crore, growth of 9.23% YoY
  • CASA Ratio: 44.65% of total deposits
  • RAM Business: ₹2,54,273 crore, growth of 21.11% YoY
  • Retail Advances: ₹1,12,299 crore, growth of 24.49% YoY
  • Agriculture Advances: ₹67,778 crore, growth of 19.92% YoY
  • MSME Advances: ₹74,196 crore, growth of 17.36% YoY

Asset Quality:

  • Gross NPA: 2.39% (aligned with guidance of below 2.50%)
  • Net NPA: 0.31%, improved by 17 basis points
  • Provision Coverage Ratio: 97.16%
  • Slippage Ratio: 0.24% for the quarter (within guidance of less than 0.25%)
  • Credit Cost: 0.53% for the quarter

Strategic and Operational Highlights

Business Performance vs Guidance:

  • Business Growth: Guided 14-15%, achieved 20.54%
  • Deposit Growth: Guided 10-12%, achieved 14.41%
  • Advances Growth: Guided 14-16%, achieved 29.83%
  • CASA Ratio: Guided 48% ±1%, achieved 44.65%
  • RAM to Corporate Ratio: Guided 65:35 ±5%, achieved 68:32
  • NIM: Guided above 3%, maintained at 3.01%

New Initiatives & Expansion:

  • GIFT City Branch opened on June 29, 2026
  • Overseas Advances: ₹8,093 crore through GIFT City Branch
  • Planning to open 116 specialized gold loan branches with 30-minute TAT
  • Focus on SHG lending with tie-ups in 26 states under NRLM
  • Recruited 300 marketing officers
  • Wealth management services launched
  • Credit card franchise to start by June 2027
  • Cash management services modules being launched

Corporate Banking:

  • Corporate Book: ₹1,18,666 crore, growth of 42% YoY from ₹83,000 crore
  • Pipeline: ₹7,000 crore undisbursed sanctions, ₹5,200 crore under process, ₹11,000 crore under consideration
  • Focus sectors: Renewable energy, roads, data centers, real estate, hospitality, manufacturing, NBFCs, agri-food processing, logistics

Treasury Performance:

  • Yield: 7.19% as of September 30, 2026
  • AFS Portfolio: Reduced from ₹843 crore to ₹1,023 crore
  • Treasury Income: ₹56 crore from IPO participation
  • Outlook: Challenging due to rising yields and global conditions

ECL Provisioning Preparation:

  • Estimated ECL requirement: ₹5,000-5,500 crore for implementation from April 1, 2027
  • Already provided ₹1,525 crore for Stage 1 and Stage 2
  • Stage 3 has 100% provision
  • Considering options for one-time hit or staggered approach

Recovery & Asset Resolution:

  • Recovery from written-off accounts: ₹485 crore in Q2
  • Total written-off pool: ₹31,301 crore
  • Expected recovery: ₹2,500+ crore for full year
  • Aviation account: Expected recovery of ₹700 crore through SARFAESI process
  • E-OTS (electronic one-time settlement) scheme implemented
  • Kisan Rin Mochan scheme for small value accounts
  • Previous year property auctions: 485; current half-year reached same number

Digital Transformation:

  • New Banking Emerging Technology (NBET) department created
  • 45 digital journeys launched
  • Focus on improving user experience across mobile and internet banking
  • Technological capabilities for early warning signals and monitoring

Specific Financial Details:

  • FCNR(B) Deposits: 926.74 million USD across 731 accounts
  • Overseas Loans against FCNR(B): 794.60 million USD
  • Liquidity Coverage Ratio: 156%
  • Business per Employee: ₹25.26 crore vs ₹21.48 crore YoY
  • Yield on Advances: 7.87%
  • Cost of Deposits: 4.60%
  • Standard Advances Provision: Increased from ₹30-37 crore to ₹399 crore

Management Participants

  • Shri Kalyan Kumar – Managing Director & CEO
  • Shri M. V. Murali Krishna - Executive Director
  • Shri Mahendra Dohare - Executive Director
  • Shri E. Ratan Kumar - Executive Director
  • Shri Vivek Kumar – Chief Financial Officer
  • Dr. G. Bhaskar – General Manager Treasury
  • Himanshu Gupta – (Role not specified, answered ECLGS query)

Analyst Participants

  • Moderator: Shri Siddharth Rajpurohit - Systematix Institutional Equities
  • Ashok Ajmera - Ajcon Global
  • Sushil Choksey - Indus Equity
  • Rajesh Agarwal - AUM Capital Markets
  • Ashlesh Sonje - Kotak Securities
  • Deepak Kala - Trimurti Enterprise Private Limited