• Financial performance: Quarterly profit crossed 1,000 crore for the first time in the bank's history, driven by a 36% YoY increase in pre-provision operating profit and an approximate 30% decline in provisions. The bank achieved a Return on Assets (RoA) of 1.06% and expects to maintain an RoA of at least 1% for the year.
• Margin and credit cost: Core Net Interest Margin improved to 5.9%, leading to an upgraded full-year NIM guidance of 5.8%. Credit costs decreased to 1.53%, with full-year credit cost guided between 150 and 160 basis points due to robust asset quality across all products.
• Deposit and loan growth: Both deposits and advances are projected to grow by more than 20% despite potential monsoon and geopolitical headwinds. Deposits grew 6% sequentially in the quarter, outperforming the bank's prior guidance of 5%.
• Wholesale book strategy: The wholesale book reached approximately 65,000 crore out of a total 3,05,000 crore loan book, growing at 30% YoY. While wholesale loan yields are lower at 9% to 9.25%, the segment remains RoA-accretive and safe due to low incremental sourcing costs and cross-selling opportunities in cash management, forex, and corporate accounts.