• Credit cost stability: Overall credit cost remained steady at 1.6% in Q1, compared to 1.5% in Q4 and 1.6% across the entire prior year. Management noted that higher reported provisioning was driven by voluntary conservatism in Stage 2 loans under updated Ind AS models rather than portfolio deterioration.
• Funding cost outlook: Management expects borrowing costs to decrease by 50 to 80 basis points going forward, supported by a credit rating upgrade to AA+. Borrowing costs declined by 4 basis points in Q1 despite tight liquidity and elevated domestic interest rates earlier in the quarter.
• Operational efficiency gains: Driven by internal AI deployment, revenue grew approximately 40% year-over-year while expenses increased by only 10%. Over the past two years, assets under management doubled with a flat operations headcount, and individual credit underwriters are managing 50% larger portfolios.