Financial Performance Highlights

  • Q1 FY27 PAT: ₹155 crore
  • Net Interest Margin (NIM): 7.5%, improvement driven by 50 bps YoY decline in cost of funds and reduced slippage/NPA primarily on unsecured portfolio
  • Credit Cost: 0.45% (flat compared to Q4 FY26)
  • Gross NPA: 2.24% of gross loan book
  • Net NPA: 0.85% of gross loan book
  • PCR Rate: 62.4%
  • ROA: 1.4%
  • ROE: 13.6%
  • Cost of Funds: 7.4% (60 bps decline from Q1 FY26)
  • Cost-to-Income Ratio: 66.7-67% range

Portfolio Performance

  • Secured Assets Growth: 29% YoY
  • Unsecured Portfolio (MFI): ₹10,240 crore, grew 2.8% QoQ and 18% YoY
  • Gold Loan Portfolio: ₹2,678 crore, grew 13.5% QoQ and over 100% YoY with average LTV of 64%
  • Portfolio Distribution: Moving toward 80% secured from current 72.8%
  • Slippages: Reduced by 20% QoQ in unsecured portfolio (from ₹155 crore to ₹125 crore)

Deposit Performance

  • Overall Deposit Growth: Flat QoQ
  • CASA Growth: 7.1% QoQ, 31% YoY
  • Retail Term Deposit Growth: 31% YoY, 2.3% QoQ
  • Bulk Deposits: Reduced by 6% QoQ
  • Retail Deposit Ratio: 64.9% (up from 60.2%)
  • Deposit Maturity Profile: 97% of retail and 83% of bulk deposits of 1 year and above

Capital and Funding

  • Capital Raise: Received first ₹103 crore of total ₹728 crore capital raise
  • TVS Group Investment: Awaiting RBI approval for next ₹80+ crore investment
  • Balance Capital: 75% of total to come over 18 months period
  • Borrowings: Decline mainly in overnight repo calls, while long-term institutional finance from NABARD, SIDBI, NHB continues

Guarantee Program Coverage

  • Unsecured Book Coverage: 79.8% (nearly 80%) under guarantee program
  • Net NPA Coverage: ₹214 crore total net NPA for unsecured, with ₹196 crore covered under guarantee program
  • Claims Planned: ₹65 crore to be claimed in Q3 FY27

Branch Expansion and Product Launches

  • Branch Expansion Plan: 78 branches total (8 new, 30 splits, 40 relocations)
  • Execution: 7 branches executed so far
  • Gold Loan Branches: Current 568-570 branches, planning to add 50-75 more in next 2 quarters
  • Product Launches: Credit Line on UPI to go public in Q2 FY27; Loans against shares launching in Q2 FY27 after RBI approval for ₹1 crore limit
  • Nostro Setup: Planned for July 2026, potentially enabling FCNR(B) offering in August/September

Business Segment Performance

  • Strong Growth Segments: Affordable housing, MSME, vehicle loans, gold loans
  • NBFC Term Loans: Reduced by design, expected to remain flat through year
  • Micro LAP: Negative growth in Q1 due to shift toward direct sourcing, expected to return to positive growth in Q2
  • Used Car Business: Launched October 2025, monthly disbursement ~₹45 crore, present in 50 cities

Promoter Holding Company Situation

  • Jana Holding & JCL Stake: 16.9% (down from peak 44% due to dilution)
  • Rating Downgrade: Technical default due to NCD holders requesting 6-month extension for share sale
  • Bank Impact: No operational or financial impact, no common board members, no cross-default linkages
  • CARE Rating Action: No watch or rating impact on bank

FY27 Guidance Maintained

  • Gross Loan Growth: 19-21%
  • Deposit Growth: 23-25%
  • PAT Growth: 80%+
  • CASA Ratio Target: ~20%
  • Cost-to-Income Ratio: Expected to reduce to 63-65% range

Risk Factors Addressed

  • Geopolitical Risks (Iran war): No material impact observed, portfolio well diversified
  • Weather Risks (El Nino): No impact observed, close monitoring continues
  • Gold Price Correction: No material impact expected due to conservative LTV (64%) and robust collateral monitoring

Operational Updates

  • RCB IPL Partnership: Successful with 7% QoQ CASA growth attributed partially to campaign
  • Government Deposits: Not fully recovered but bank re-empaneled, expecting flows in Q2/Q3
  • Expense Management: Q4 to Q1 expense growth only ₹10 crore, focusing on nominal cost increase with 20% asset growth