• Asset quality metrics: Gross NPA dropped to a five-quarter low of 2.60% compared to 3.13% last year, while net NPA remained stable at 0.49%. Special mention accounts decreased to 0.29%, or 0.19% excluding agriculture and Kisan Credit Cards.
• NIM outlook: Following a 16% rise in net interest income, the bank guided that it will maintain its net interest margin above 3% for the full year, despite the recent moderation to 3.06%. Management is also undertaking structured efforts to boost non-interest income.
• MSME slippage management: Total slippages held steady year-on-year at 986 crore, showing negligible impact from geopolitical tensions. However, MSMEs account for 73% of total slippages, which the bank is controlling through enhanced portfolio monitoring and borrower capability building.
• FCNR deposit targets: The bank has mobilized 8.4 million US dollars in FCNR(B) deposits to date and expects to scale this business to approximately 400 million US dollars by September 30, supported by its new Gift City branch.
• CASA expansion initiatives: The CASA ratio stands at 46.61%, supported by 65% of branches located in rural and semi-urban areas. Management plans to accelerate growth via 35 customer acquisition centers, 22 government department MOUs, a new wealth management vertical, and the re-launch of credit cards.