• Margin outlook: Net interest margin was 4.18 for the quarter, versus 4.36 in the previous quarter; excluding interest on a tax refund, the previous-quarter figure was 4.28. FCNR(B), a marginally lower CASA ratio, growth in retail term deposits and overseas branches moderated margins; the full impact is expected in the third quarter, after which margins should start moving up, even at current policy rates.
• Deposit growth: Outstanding deposits grew by about 27% year-on-year; period-end deposits excluding FCNR(B) grew by about 17% year-on-year and 3.1% sequentially. The bank said it prioritises quality customers and being their primary banker, rather than targeting a particular deposit mix.
• Loan growth: The total loan portfolio grew by 30% year-on-year and 3.3% sequentially; excluding leverage on FCNR(B) deposits, it grew by 24% year-on-year and 7.3% sequentially. The bank said it has no specific loan or deposit growth target and will expand where opportunities meet its risk-calibrated approach.
• Corporate lending: The corporate portfolio grew by about 30%, broadly across capex and higher working capital needs, with some demand shifting from bond markets and ECBs to bank borrowing. The bank said it will lend where opportunities meet its risk and return threshold and support a 360-degree customer relationship.
• NPA additions: Gross additions to NPAs were about ₹4,800 crore, including ₹3,700 crore from rural and retail and about ₹1,100 crore from corporate and business banking. Recoveries and upgrades were ₹3,600 crore, leaving net additions of about ₹1,200 crore before write-offs and sale of NPAs.