1. EEB turnaround - EEB portfolio stabilised at ₹52,641 cr in Q1FY27, down just 0.3% QoQ versus steep declines through FY26, with collection efficiency at 98.9% and slippages down to ₹604 cr from ₹1,118 cr a year ago. Management guides EEB credit cost to 2.5-3% by end-FY27 from 3.3% now, which on a ₹52,000 cr book is roughly ₹150-400 cr of annual provision savings.
2. Secured mix shift - Secured book grew 25% YoY to nearly 56% of advances, hitting the 58% FY27 target nearly a year early. Each point of mix shift away from unsecured EEB lowers the portfolio's credit risk profile, supporting the guided decline in overall credit cost toward 2.5-3%.
3. Retail assets engine - Retail assets (non-EEB) grew 45% YoY to ₹161.0 billion, led by vehicle finance at ₹61.1 billion and gold loans at ₹28.4 billion. This is the fastest-growing book at roughly 45% YoY, and at 57% secured it is the primary driver of the bank's shift toward higher-quality, higher-yield lending.
4. Wholesale banking scale-up - Wholesale banking grew 38% YoY to ₹512.8 billion, now 33% of the loan book, with 96% of FIG, H&E outstanding rated A- & above and 76% of CBG outstanding rated BBB+ & above. At 33% of advances and growing at nearly four times the overall book, this segment is the main engine for non-EEB balance-sheet growth.
5. Deposit retailisation - Retail deposits grew 16% YoY to 74% of total deposits, with bulk deposits down 13% YoY to 26% of the mix. The shift from bulk to retail funding lowers the cost of funds - savings account cost already fell from 5.5% to \~4.2% - and reduces refinancing risk.
6. PSL cost reduction - PSL-qualifying EEB loans rose from 10-15% a year ago to 40%, with a target of 60-65%; management aims to cut PSL cost by \~50% in FY27 versus FY26. PSL cost was \~₹150 cr in Q4FY26, so halving it adds roughly ₹75 cr per quarter to pre-provision profit.
7. Fee income acceleration - Third-party distribution income grew 47% YoY and product/service charges grew 54% YoY in Q1FY27. Core non-interest income ex-treasury grew 22% YoY, and with credit card launch expected in Q2FY27, this fee stream is compounding faster than the loan book.
8. Housing finance revamp - Housing book grew 5.7% YoY to ₹345.4 billion, with the salaried segment now 56.5% of the pool and MCLR cut \~200 bps to align with market rates. The revamp into three verticals and conversion of 57 housing centres into full branches positions this ₹345 billion book - the second-largest after EEB - for renewed growth after teething issues.