Financial Results Highlights

Profitability Metrics

  • Q2 FY27 PAT: ₹160 crore, representing more than double sequential growth from previous quarter
  • Q2 FY26 Comparison: Loss of ₹116 crore in same quarter previous year
  • Pre-Provision Operating Profit (PPOP): ₹362 crore, showing 289% YoY growth
  • Return on Assets (RoA): 1.5% for Q2 FY27
  • Return on Equity (RoE): 26.5% for Q2 FY27

Interest Income and Margins

  • Interest Income: ₹1,175 crore in Q2 FY27, growth of 43% YoY
  • Net Interest Margin (NIM): 8.2% in Q2 FY27 compared to 5.9% in Q2 FY26
  • Cost to Income Ratio: Improved to 57.7% from 82.0% in Q2 FY26

Business Growth

Advances Performance
  • Gross Advances: ₹23,934 crore, growth of 25% YoY and 3% QoQ
  • Secured Advances: ₹15,377 crore, growth of 32% YoY and 6% QoQ, now constituting 64% of portfolio
  • Gold Portfolio: Crossed ₹10,000 crore reaching ₹10,456 crore, growth of 39% YoY, accounting for ~44% of portfolio
  • Unsecured Advances: ₹8,557 crore, growth of 15% YoY but decline of 2% QoQ
  • MARG Portfolio: Growth of 38% YoY and 8% QoQ
  • Emerging Household Portfolio: Growth of 134% YoY
Deposits Performance
  • Total Deposits: ₹28,466 crore, growth of 24% YoY and 6% QoQ
  • Retail Deposits: Crossed ₹25,000 crore, reaching ₹25,475 crore
  • CASA: ₹6,645 crore, growth of 10% YoY and 6% QoQ
  • CASA Ratio: Stable at 23.3%
  • Cost of Funds: 7.2% in Q2 FY27 compared to 7.4% in Q2 FY26
  • Credit to Deposit Ratio: 82.0%

Asset Quality

  • Gross NPA (GNPA): 2.8% as of September 30, 2026 (improved from 8.5% as of September 30, 2025)
  • Net NPA (NNPA): 0.3% as of September 30, 2026 (improved from 3.8% as of September 30, 2025)
  • Provision Coverage Ratio: 94.0% as of September 30, 2026 (improved from 74.4% as of September 30, 2025)
  • Slippages: Lower by 75% in Q2 FY27 compared to Q2 FY26

Capital and Liquidity

  • Capital Adequacy Ratio (CRAR): 24.1%
  • Net Worth: ₹2,027 crore
  • Liquidity Coverage Ratio (LCR): 141.5% as of September 30, 2026

Credit Rating Updates

  • Brickwork Ratings: Upgraded Tier II Bonds to "BWR A-/Stable" from "BWR BBB+/Stable"
  • CARE Ratings: Revised long-term rating outlook to "CARE A-/Stable" from "CARE A-/Negative"

Strategic Initiatives

  • Successful implementation of ESAF 2.0 – StratoNeXt technology transformation program
  • Continued focus on building diversified and secured portfolio
  • Expansion of phygital strategy combining branch network with digital capabilities

Management Commentary

Dr. K. Paul Thomas, Managing Director & CEO, stated that Q2 FY27 marks an important milestone in the bank's transformation journey with record profitability, strong business growth, and improving asset quality. The bank will continue to strengthen its core MARG portfolio, deepen financial inclusion, and advance its phygital strategy.