1. SMBC partnership monetisation - SMBC closed its 24.2% stake purchase in Q2 FY26, with two nominee directors on the board, and the bank is now exploring transaction banking, retail products for SMBC's corporate clients, and SME supply-chain lending. This opens the Indo-Japanese corridor - trade, investment and infrastructure flows - where management aims to capture maximum business.
2. RIDF rundown - Mandated deposits fell to \~6% of total assets at FY26 end from 9% a year earlier, with at least ₹6,500 cr more reduction guided for FY27. Normalised for the rundown, FY26 NIM was 3.1% versus 2.7% reported and RoE 9.2% versus 8.4% - the single biggest lever to the 3.25-3.5% structural NIM target.
3. Deposit repricing - Savings account blended rates were cut over 150 bps in the past year to below 4.5%, with another cut in April; cost of funds fell 60 bps YoY to 5.8% in Q4 FY26. Management targets NIM above 3% by FY28, and each quarter of repricing flows straight through to pre-provision profit.
4. CASA franchise build - CASA deposits crossed ₹1 lakh cr, growing 14.9% YoY with the ratio up 80 bps to 35.1% in Q4 FY26; retail and branch-led deposits now form \~60% of total deposits. This lowers the cost of funds structurally and funds the retail asset push without wholesale dependence.
5. Retail disbursement acceleration - Retail disbursements grew 27.5% YoY in Q1 FY27, with management expecting double-digit book growth in 3-4 quarters as run-off slows. Retail has already reached breakeven excluding excess provisions more than the regulatory requirement, so incremental book growth drops to the bottom line.
6. Commercial banking momentum - Commercial banking grew 17% YoY in Q1 FY27, with MSME advances at 29.3% of total advances, among the highest in the industry. The segment carries a 0.6% GNPA, making this the highest-quality growth engine in the book.
7. Corporate banking traction - Corporate and institutional advances grew 19.7% YoY in FY26 to ₹77,433 cr, with a 0.6% segmental GNPA. The 185-relationship-banker large-corporate team is now positioned to cross-sell transaction banking and fee income.
8. JC Flowers ARC monetisation - Security receipts have a face value of ₹1,500 cr with NAVs above ₹2,000 cr, and management guides ₹800-1,000 cr of gains for FY27. P&L gain from Security Receipts of ₹446 cr in Q4FY26 show the pace, and each redemption converts a fully provided asset into cash and P&L gain.
9. Branch network expansion - The bank opened 82 branches in FY26, taking the network to 1,334, against a 4-5 year plan of \~400 branches at \~80 per year. Branch-led sourcing of retail asset disbursements rose to 46% in Q4 FY26 from 38% two years earlier, so each new branch feeds the higher-margin retail engine.