• Advances growth outlook: Full-year loan growth is poised to significantly beat the initial 20% guidance after achieving 28% growth in Q1 and stronger momentum in Q2, driven by robust unmet demand and branch expansion.
• Credit cost trajectory: Against a full-year credit cost guidance of 1.5%, Q1 recorded 1.35%, with expectations for further reduction through the year due to controlled gross slippages and improving recoveries.
• Net interest margins: NIM is projected to contract by 15 to 20 basis points from 7.24% in Q1 owing to higher deposit rates and a largely fixed-rate loan book, though lower cost-to-assets and credit costs should protect operating profit.
• Microfinance segment recovery: Asset quality concerns in microfinance have subsided following an industry-wide portfolio contraction from ₹4.6 lakh crore to ₹3.5 lakh crore, easing overleveraging risks across the bank's 10–11% microfinance book.