• Advances growth outlook: The bank expects loan growth to exceed its cautious 20% guidance this year after delivering 28% growth in the first quarter, with a five-year target to expand gross advances from Rs 45,000–47,000 crore to over Rs 1.2 lakh crore.
• Loan portfolio mix: Secured lending will represent 85% of the book—led by small business loans at 40%, commercial vehicle finance at 25%, and affordable housing at 13%—while unsecured exposure will be limited to 15%, comprising 10% microfinance and 5% in new credit card and personal loan products.
• Margin and profitability: Net interest margins are expected to trim from 7.24% in the first quarter to about 7.1% for the year and hold near 7% over the medium term, with a steady-state return on assets target of 1.5% plus over five years.
• Asset quality trajectory: Credit costs are guided to improve below 1.36% for the remainder of the year following the resolution of microfinance overleveraging, while gross NPA and net NPA are projected to remain steady around 2.4% and 0.7%, respectively.
• Capital and licensing: Capital adequacy stands above 20%, allowing the bank to postpone tapping its enabling Rs 1,250 crore fundraise until late in the fiscal year or early next year, while management continues informal engagement with the RBI regarding eligibility for a universal banking license.