Financial Performance

  • Profit After Tax (PAT) of ₹184 Crore in Q1FY27, compared to a loss of ₹224 Crore in Q1FY26
  • Return on Assets (RoA) of 1.18% and Return on Equity (RoE) of 11.76% for Q1FY27
  • Net Interest Income grew 31% YoY to ₹1,030 Crore from ₹786 Crore
  • Net Income grew 19% YoY to ₹1,280 Crore and 3% QoQ from ₹1,239 Crore
  • Credit Cost declined significantly to 1.37% in Q1FY27 from 6.48% in Q1FY26
  • Cost to Income ratio expected to moderate further in H2FY27 driven by operating leverage

Assets and Disbursements

  • Gross advances grew 27% YoY to ₹47,641 Crore and 3% QoQ from ₹46,165 Crore
  • Excluding Direct Assignment outstanding of ₹837 Crore, advances grew 24% YoY and 4% QoQ
  • Overall disbursements at ₹6,784 Crore in Q1FY27, growth of 93% YoY and decline of 8% QoQ
  • Non-MFI disbursements at ₹5,441 Crore, growth of 68% YoY and decline of 7% QoQ
  • Portfolio growth by segment: Housing Finance 24% YoY, MSE 28% YoY, Gold Loan 179% YoY
  • SBL grew 15% YoY with BL advances contributing 34% of SBL portfolio, growing 32% YoY
  • Used Car and Used CV advances grew 30% YoY and 25% YoY respectively

Liabilities and Deposits

  • Overall deposits grew 10% YoY to ₹48,976 Crore and 5% QoQ from ₹46,533 Crore
  • Cost of Funds increased by 11 bps to 7.05% during the quarter
  • CASA ratio stands at 25%
  • Total Retail Deposits (Retail TD+CASA) form 66% of overall deposits
  • CD ratio at 92.93% in Q1FY27 compared to 93.65% in Q4FY26
  • CD Ratio after reducing Refinance borrowings from advances stands at 81.25%
  • FCNR deposits launched in Q3FY26 crossed USD 42 million

Asset Quality

  • GNPA reduced by 13 bps QoQ to 2.36% in Q1FY27 from 2.49% in Q4FY26
  • Including securitization book, GNPA would stand at 2.31%
  • NNPA increased by 2 bps QoQ to 0.70% from 0.68%
  • PCR remains stable at 71.02% (86.96% including technical write-offs)
  • Net Slippages at 1.43% in Q1FY27, the second-lowest among first quarters over last five years
  • Net Slippages Ratio for MFI Book at 2.76% and Non-MFI Book at 1.24%

Management Updates

  • Mr. Mukund Shyamrao Barsagade appointed as Chief Financial Officer (KMP), effective July 1, 2026
  • Mr. Taraka Ramana Prathipati appointed as Interim Chief Risk Officer (SMP), effective July 1, 2026

Guidance and Outlook

  • Expect 20%+ growth in overall advances for FY27
  • Target exit ROA of about 1.5% in Q4FY27
  • Expect full year FY27 ROA of ~1.2%
  • MFI advances expected to be maintained at around 10% of overall advances
  • Credit costs expected to normalize with marginal increase and stabilization towards FY27

Additional Information

  • Overall Yield excluding Direct Assignment book increased by ~20 bps to 15.86% in Q1FY27
  • NIM declined by ~12 bps QoQ to 7.24% in Q1FY27 (calculated on daily average basis)
  • Bank strengthened provisioning norms leading to additional provisions of ~₹145 Crore
  • One-time additional stress sector provisioning of ~₹185 Crore proactively on standard assets for MFI
  • Total network: 394 onsite and 4 offsite ATMs
  • Liquidity Coverage Ratio (LCR) as on June 30, 2026 is 178.46%