• Margin and yield outlook: Net interest margin moderated by 12 basis points to 7.24% in Q1 due to rising cost of funds, but is projected to stabilize between 7.14% and 7.15% as higher asset yields offset future funding cost increases.
• Credit cost and ROA: Q1 credit cost came in at 1.35% with the lowest first-quarter net slippages in five years, positioning the bank to outperform its full-year 1.2% ROA guidance as credit costs trend toward 1.1%–1.15% by Q4.
• Loan book strategy: Microfinance exposure has been curtailed to 10% of total advances to minimize cyclical volatility, while the remaining 90% of the book is targeted to grow at over 20% fueled by strong demand in small business and affordable housing segments.
• Deposit growth initiatives: Following a weak 10% deposit growth in Q1 that pushed the standalone credit-deposit ratio to 92%, recent deposit rate revisions and strong FCNR(B) inflows—adding $17 million of a $35 million target in July—are accelerating mobilization.