• Growth guidance upgrade: The bank revised its full-year guidance upward, now projecting advances to grow by 15% to 18% and deposits by 13% to 14%.
• Net interest margin: NIM contracted from 3.75% to around 3.25% due to lower yields on competitive corporate loans and temporary higher-cost deposits, but management expects it to rebound above 3.5% starting next quarter.
• Asset quality metrics: Gross NPA decreased from 2.5% to 2.37% quarter-on-quarter alongside lower slippages, while provisioning increased to 84 crore primarily because strong loan growth mandated higher standard asset provisions.
• Profit and recoveries: The 12% drop in quarterly profit was attributed to the standard asset provisioning impact and a timing mismatch on an expected 70 to 80 crore written-off recovery, which is slated to arrive in the next quarter.