• NIM expansion drivers: Net interest margin increased by 13 bps sequentially due to CASA growth and the planned reduction of high-cost deposits, with management expecting to sustain expansion over the next two to three quarters.
• CASA ratio target: The bank aims to increase its CASA ratio to 36% within six to seven quarters, backed by branch expansion and average annual growth of 32% in current accounts and 23% in savings accounts.
• Asset quality outlook: No major stress is visible across lending portfolios, and the microfinance segment is continuing to show steady improvement following stress experienced last year.
• Lending portfolio strategy: Management is shifting focus away from low-yielding assets toward mid-yielding segments such as loan against property, commercial vehicles, and gold loans amid persistent pricing competition.
• Gold loan resilience: The gold loan book maintains an LTV ratio of approximately 60%, up from 54% in the March quarter, which provides a strong buffer against gold price corrections well below the 75% comfort mark.