• Q1 financial performance: The bank recorded its fourth consecutive quarter of record PAT, supported by 20% liability growth, 17% asset growth, and a NIM of 3.3%. Core fee income grew to 175 crores from 134 crores year-on-year, while cost to average assets reached a historical low of 2.42% and gross NPA dropped to 2.43%.
• Loan growth strategy: Sequentially flat loan growth reflected deliberate liquidity stockpiling, a 300 crore IBPC transaction returning in Q3, and a reduction in co-lending from 16% in Q3 to 12.48%. Future organic loan momentum will be led by mortgages, business loans, and the agri lending segment.
• Deposit cost management: Deposits grew 20% year-on-year with maintained retail granularity, while the cost of deposits decreased sequentially for the fifth consecutive quarter. The bank also narrowed its term deposit pricing gap against the largest industry banks from over 120 basis points to approximately 60 basis points.
• Segment growth outlook: Management anticipates sustaining 18% to 20% overall annual growth, propelled by gold loans, agri lending, and mortgages, where Q1 disbursements increased 35% year-on-year. NIM expansion will continue to be driven primarily by lowering term deposit costs alongside current account improvements.