• Slippages and recovery: Elevated slippages in Q3 were primarily technical, with more than ₹30 crore already recovered or upgraded, keeping the bank on track for improved performance in Q4 and the next fiscal year.
• Scale and growth: Having completed core tech transformations, the bank will enter its scale phase in FY27 and aims to comfortably exceed its ₹1 lakh crore loan book target by FY30 across wholesale, SME, retail, and gold verticals.
• NIM and CASA: Management expects net interest margins to remain in the 3.75% to 4.0% range, with CASA growth accelerating and cost of funds decreasing starting in FY28.
• Return ratio targets: The bank is targeting a return on assets (ROA) of approximately 1.5% and a return on equity (ROE) above 15%, while acknowledging a 20% ROE is unlikely during this high-investment build phase.
• Capital raising timeline: Strong profit accretion at the targeted 1.5% ROA is expected to eliminate the need for an equity fundraise for the next 1.5 to 3 years.