• Asset quality trends: Gross and net NPA ratios, alongside overdue metrics across segments including MSMEs, are currently at their best levels in multiple decades.
• RBI policy outlook: The central bank's policy stance was more benign than expected, though oil prices remaining above $100 per barrel for two to three quarters would present downside risks to inflation and growth.
• Deposit growth dynamics: Remittances have not shown material slowdown given low Middle East exposure, and short-term fortnightly deposit fluctuations should not be extrapolated as long-term structural shifts.
• Treasury MTM impact: Elevated bond yields are not expected to harm short-term earnings because mark-to-market hits on AFS portfolios are buffered by existing Investment Fluctuation Reserves rather than directly impacting the P&L.