• Return metrics target: The bank reported a Q4 ROA of 1.8% and FY26 ROE of 14.2%, but management prioritizes long-term sustainable ROE, targeting around 15–16% over a multi-year horizon.
• Asset quality improvement: Provisioning decreased by 57% driven by a six-month recovery in microfinance following industry guardrails, alongside improvements in the unsecured portfolio and low default rates across vehicle and mortgage segments.
• Net interest margins: With asset yields around 14–15% against a ~7% cost of funds, the bank expects NIMs close to 6% to stay resilient and bias upward as microfinance growth resumes and personal loans expand.
• ECL framework impact: RBI's new expected credit loss guidelines are expected to strengthen banking balance sheets through data-driven provisioning across SMA categories, with transitional impacts stabilizing within one to two years.