Date: October 24, 2026

Financial Performance Highlights

Profitability:

  • Q2 FY27 Profit After Tax: ₹1,045 crore, up 196.5% year-on-year
  • H1 FY27 Profit After Tax: ₹2,120 crore
  • Q2 FY27 Return on Assets: 0.93%
  • H1 FY27 Return on Assets: 0.99%
  • Core operating profit (excluding trading gains): ₹2,527 crore in Q2 FY27, up 38.5% YoY

Deposit Growth:

  • Total deposits: ₹3,48,583 crore, up 25.9% YoY and 11.8% QoQ
  • Average CASA ratio: 48.4% in Q2 FY27 (slight decline from 50.1% due to FCNR(B) deposit mobilization)
  • FCNR(B) deposits mobilized in Q2 FY27: ₹34,390 crore (approximately US$3.6 billion)
  • FCNR(B) deposits largely of 3-to-5-year tenor
  • Fully loaded cost of FCNR(B) including PSL benefits: approximately 1% lower than domestic fixed deposits

Loan Growth:

  • Loans and advances including credit substitutes and FCNR(B)-backed loans: ₹3,46,913 crore, up 30.1% YoY
  • Loan growth excluding loans secured by FCNR(B) deposits: 22.2% (gross of IBPC)

Asset Quality:

  • Gross NPA: 1.32%
  • Net NPA: 0.40%
  • Credit cost (as percentage of average assets): 1.01% (reduced)

Operational Efficiency:

  • Opex growth remained lower than income growth by about 500 bps YoY for consecutive quarters
  • Incremental cost-to-income ratio: 55% in H1 FY27
  • Core cost-to-income ratio (excluding trading gains): 70.16% in Q2 FY27 (improved from 70.73% in Q1 FY27)

Strategic Developments

International Rating:

  • S&P Global Ratings assigned investment-grade long-term rating of 'BBB-'

Balance Sheet Impact:

  • Balance sheet expanded by ₹24,885 crore as loans were extended by IBU branch against FCNR(B) deposits
  • FCNR(B) mobilization provides strong structural liquidity for coming years
  • FCNR mobilization expected to benefit NII, PAT, EPS and RoE, though optically NIM-dilutive

Management Commentary

Mr. V. Vaidyanathan, MD and CEO, highlighted:

  • PAT crossed ₹1,000 crore for second consecutive quarter (both Q1 and Q2 FY27)
  • Operating leverage demonstrated through opex growth lower than income growth by about 500 basis points for second consecutive quarter
  • Cost-to-income ratio continues to decline
  • ROA now within touching distance of 1%
  • FCNR(B) deposits provide structural liquidity of 3 to 5 years, particularly valuable in rising interest-rate environment

Bank Overview (as of September 30, 2026)

Scale and Operations:

  • Serves over 40 million customers
  • Customer business: ₹6,88,328 crore ($72.0b)
  • Customer deposits: ₹3,41,415 crore ($35.7b), grew 26.9% YoY
  • Loan assets: ₹3,46,913 crore ($36.3b), grew 30.1% YoY
  • Reach: Over 60,000 cities, towns, and villages
  • Network: About 1,200 branches and digital channels

Business Scope:

Universal Bank offering complete range of services including Retail, MSME, Rural, Startups, Corporate Banking, Cash Management, Credit Cards, Wealth Management, Deposits, Government Banking, Working Capital, Trade Finance, and Treasury solutions.