• Net interest margins: Recent margin compression was a one-time aberration driven by high-cost deposits taken to fund corporate growth, which have since been shed. Management expects margins to recover to normal levels of 3.5% and above in the coming quarters as the bank refocuses on retail growth.
• CASA ratio targets: The bank maintained a CASA ratio above 42%, which is roughly 300 basis points above the industry average, and expects to improve this metric by 100 to 200 basis points over the next three to four quarters.
• Standard asset provisioning: The rise in provisions was entirely due to standard asset provisioning increasing by ₹60 to ₹70 crore alongside robust loan growth, while slippages and NPA-related provisions declined.
• Capital raising plans: The bank is scheduled to execute a capital raise in a couple of months and expects to maintain comfortable capital adequacy to absorb upcoming Expected Credit Loss transition requirements.
• Geographic branch mix: To diversify concentration risk beyond Jammu and Kashmir, the bank plans to shift its branch footprint from the current 85:15 split to roughly 70:30 or 60:40 across the rest of India over the next three to five years.