• Branch fraud impact: Management stated the Chandigarh branch fraud was an isolated collusion incident with full provisioning absorbed in Q4 operating expenses, alongside newly tightened controls and transaction monitoring.
• Top-line and opex: Operating expenditure growth is guided at 13% to 14% for the next year following normalized Q4 growth of 12.3%, while top-line revenue is projected to accelerate to 18% to 18.5%.
• Loan and deposits: The bank is targeting 19% to 20% loan growth compared to 10% to 11% system growth, alongside projected deposit growth of 20% to 22% next year.
• Net interest margin: After reporting a Q4 NIM of 5.93% (5.8% adjusted for day convention) and a full-year NIM of 5.75%, the bank expects to sustain margins at around 5.75% next year.
• Cost of funds: The CASA ratio is being maintained at 49.8%, with the cost of deposits falling below 6% and the total cost of funds declining 50 basis points over the past year to 6%.