• Event Type: Q1 FY2027 Earnings Conference Call arranged by Veritas Reputation PR Private Limited to discuss financial results for the quarter ended June 30, 2026.
  • Date and Time: The call was held on July 20, 2026. The specific time was not mentioned in the transcript.
  • Purpose: Discussion of Q1 FY27 financial results and business performance.
  • Management Participants:
  • Mr. Ajay Kumar Srivastava, Managing Director and Chief Executive Officer
  • Mr. Joydeep Dutta Roy, Executive Director
  • Mr. Dhanaraj T., Executive Director
  • Mr. Raghuram Mallela, Company Secretary & Compliance Officer
  • Availability of Materials: The transcript was filed with stock exchanges and uploaded on the Bank's website pursuant to SEBI LODR Regulations.
  • Financial Period Discussed: Q1 FY2027 (quarter ended June 30, 2026)
  • Forward-Looking Statements: Management provided guidance for FY27 including:
  • Credit growth guidance of 13-14% (minimum)
  • NIM expected to be maintained in range of 3.3-3.4%
  • ROA target of ~1.46% for FY27
  • Credit cost guidance of 0.35-0.40% for FY27
  • Plan to raise ₹5,000 crore equity capital in Q3/Q4 FY27
  • Target to double FCNR deposits to $650 million by September 2026
  • GIFT City branch target of $500 million book by FY27 end

Financial Highlights from Presentation

Profitability:

  • Net profit reached all-time high of ₹1,659 crore, up 49.32% YoY (vs ₹1,111 crore in Q1 FY26)
  • Operating profit of ₹2,693 crore, registering 14.21% YoY growth
  • Return on Assets (ROA) at 1.41%, improved by 27 bps YoY
  • Return on Equity (ROE) at 22.69%, improved by 369 bps YoY
  • Earnings per share (EPS) improved to ₹0.86 from ₹0.58 YoY

Business Growth:

  • Total business mix reached ₹6,98,325 crore, recording 17.72% YoY growth
  • Total deposits at ₹3,76,193 crore, grew 13.72% YoY
  • Total advances at ₹3,22,132 crore, grew 22.75% YoY
  • CASA absolute stood at ₹1,54,415 crore, with 6.61% YoY growth
  • CASA ratio (domestic) at 41.45%; CASA Global at 41.05%

Asset Quality:

  • Gross NPA reduced to ₹4,292 crore from ₹5,178 crore YoY
  • Net NPA reduced to ₹588 crore from ₹816 crore YoY
  • GNPA ratio reduced by 64 bps YoY to 1.33% (from 1.97%)
  • NNPA ratio reduced by 14 bps YoY to 0.18% (from 0.32%)
  • Provision coverage ratio improved to 97.67% from 97.47% YoY
  • Slippage ratio reduced to 0.06% from 0.10% YoY

Capital & Valuations:

  • Capital adequacy ratio at 19.36% (vs regulatory requirement of 11.50%)
  • Book value per share improved to ₹15.79 from ₹12.41 YoY
  • Net worth increased to ₹29,256 crore from ₹28,114 crore previous quarter

Margins & Yields:

  • Net Interest Margin (Global) at 3.37%, increased by 12 bps QoQ
  • Net Interest Margin (Domestic) at 3.48%, increased by 13 bps QoQ
  • NII grew by 34.30% YoY
  • Yield on advances increased by 10 bps QoQ
  • Cost of deposits declined by 10 bps QoQ to 4.7%

Other Key Metrics:

  • SMA total at 4.05% (SMA 0: ₹5,733 crore, SMA 1: ₹3,068 crore, SMA 2: ₹4,246 crore)
  • RAM portfolio constitutes ~80% of total credit portfolio
  • CGTMSE coverage at 15-16% of total credit portfolio
  • ECLGS disbursement: ₹2,600 crore done, ₹1,800 crore expected by August-end/September first week
  • Digital transactions: 96% of total transactions

Q&A Session Key Takeaways

Profitability Drivers: Management emphasized that NII growth of 34.30% YoY was a major driver, along with PSLC commission (₹863 crore) and recovery from technically written-off accounts (₹490 crore) which are routine quarterly activities.

Asset Quality: SMA 2 increased by ₹500 crore over March 2026, but total SMA reduced by ₹2,200 crore. Management expressed confidence in asset quality with slippage ratio at 0.06%.

Corporate Book: Corporate advances declined 10% QoQ primarily due to exit from one large account (~₹10,000 crore) where pricing wasn't competitive. Pipeline of ₹14,000 crore sanctioned corporate loans in disbursement stages.

ECL Provisioning: Bank has provided ₹2,150 crore against estimated ₹3,000 crore ECL requirement and does not intend to use four-year dispensation option.

Digital Initiatives: 96% transactions digital, 75% customer onboarding digital, with continued focus on digital transformation.

Capital Raising: ₹5,000 crore equity raising plan approved, expected in Q3/Q4 FY27 through multiple tranches depending on market conditions.

Additional Notes

  • The document includes the complete transcript of the earnings conference call with detailed Q&A session.
  • The bank confirmed that accumulated losses have been made nil through internal accruals and share premium netting.
  • The transcript was filed pursuant to SEBI LODR Regulations 30 and 46(2) and corresponding stock exchange guidance.