NIM guidance above 3% for FY24
Management guided for net interest margin to remain above 3%, with Q1 NIM at 3.05%.
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Credit growth of 12-14% for FY24
Management expects loan growth in the range of 12-14% for the full year, with Q1 domestic credit growing over 3%.
Gross NPA target of 4.50% by end of FY24
Management guided for gross NPA to decline to 4.50% by March 2024.
PCR to cross 90%
Management aims to increase provision coverage ratio to above 90% through additional provisions each quarter.
NIM guidance of 2.95% for FY25
Management expects NIM to improve from 2.90% in Q1 to around 2.95% by year-end, driven by seasonal improvement in subsequent quarters.
Credit growth guidance of ~10% for FY25
Advances growth target of 10% for the full year, with Q1 already at 9.86% despite shedding INR 22,500 crore of low-yielding corporate loans.
Gross NPA target of 3.5% by FY25 end
Management guided for gross NPA to decline to 3.5% by year-end, from 4.14% in Q1, supported by controlled slippages and recoveries.
Capital raising plan of INR 8,000 crore via AT1 and Tier 2 bonds
Board has approved raising INR 4,000 crore in AT1 bonds and INR 4,500 crore in Tier 2 bonds, subject to favorable market conditions.
Credit growth of 10-11% for FY26
Management expects overall credit growth of 10-11%, with RAM growing at 15% and corporate at 10%.
NIM to stabilize around 2.5% in Q2, gradual improvement in H2
NIM likely to bottom at 2.5% in Q2 FY26, with gradual recovery in H2 as deposit costs reprice, assuming no further rate cuts.
ROA guidance of 1.05% for FY26
Management reiterated ROA target of 1.05% for the full year, with Q1 already at 1.14%.
Credit cost guidance of 90bps for FY26
Credit cost expected at 90bps for the year, though management expects to outperform due to improving asset quality.
NIM expected in 2.9%-3.05% range
Management guided NIM between 2.9% and 3.05% for coming quarters, depending on liquidity conditions.
Loan growth target of 12% for FY24
Management expects advances to grow around 12% for the full year, driven by RAM segment.
PCR target of 90% by end of FY24
Management aims to increase provision coverage ratio to 90% by March 2024.
Credit cost guidance of ~1%
Management expects credit cost to remain around 1% until PCR reaches 95%.
Credit growth of ~11% for FY25
Management expects full-year credit growth of around 11%, driven by 3.5-4% quarterly growth in H2, despite shedding low-yielding advances.
Credit cost below 1% for FY25
Credit cost guidance of 1.10% is expected to be undershot; management sees it below 1% for the full year.
RAM sector growth of 11%+
RAM (Retail, Agriculture, MSME) credit is expected to grow faster than corporate, with retail growing 13-14% and MSME 9-10%.
Gold loan growth of 16-17%
Gold loan portfolio is expected to grow 16-17% this year, driven by a new digitized product for metro cities.
Net profit to cross INR 20,000 crore in FY26
Management expects net profit to exceed INR 20,000 crore for the full fiscal year, up from INR 17,400 crore last year.
CASA ratio target of 32% by March 2026
Management reiterated its guidance to achieve a CASA ratio of 32% by end of FY26, despite balance sheet growing at 14%.
RAM to corporate ratio of 60:40 by March 2027
The bank aims to reach a 60:40 split between RAM (retail, agriculture, MSME) and corporate loans by next fiscal year.
Credit cost to remain below 1%
Management expects credit cost to stay well below 1% going forward, even with ECL implementation in March 2027.
Full-year credit growth of ~12%
Management expects domestic advances to grow around 11.5-12% for FY24, driven by RAM and selective corporate lending.
Cost-to-income ratio below 45% by March 2024
Despite one-time wage provisions, management is confident of achieving cost-to-income below 45% by Q4 FY24.
NIM to be maintained near 3%
Net interest margin is expected to remain close to 3% despite pressure from rising deposit costs.
Capital raising of INR 6,100 crore in next two months
Bank plans to raise remaining AT1 and Tier 2 bonds of INR 6,100 crore when market conditions are favorable.
Advances growth target of 10% for FY25
Management expects to achieve 10% advances growth for the full year, with current growth at 10.45% already exceeding the target.
CD ratio to be maintained below 78%
The bank aims to keep its global credit-deposit ratio below 78% to manage liquidity and cost of funds.
LCR to be restored to 115-120%
After the proposed RBI LCR guidelines, the bank plans to restore LCR to 115-120% by raising longer-tenure deposits at 7.3-7.4%.
Cost-to-income ratio around 47-48%
Management expects to maintain cost-to-income ratio in the 47-48% range, with annual expense growth of 6-7%.
NIM to remain in 2.45%-2.50% range
Management expects net interest margin to stabilize at 2.45-2.50% even if further repo rate cuts occur, supported by RAM growth and deposit repricing.
Credit growth to sustain at 13%+
Advances growth guidance of 10-11% has been surpassed; management expects to maintain current 13.59% growth momentum in Q4.
ECL impact of INR 10,000 crore amortized over 4 years
Expected credit loss implementation from April 2027 will require additional provisions of ~INR 10,000 crore, to be spread over four years, with annual impact of INR 2,000-2,500 crore.
Recovery from written-off accounts to continue at INR 2,000+ crore per quarter
Management expects to maintain recovery run-rate of over INR 2,000 crore per quarter from written-off accounts, supported by multiple recovery channels.
Credit growth of ~12% for FY25
Management guided for 10% minimum but expects to achieve around 12% credit growth, driven by RAM and selective corporate lending.
NIM to be maintained at 2.95%-3% for FY25
Despite tight liquidity, management expects NIM to remain in the 2.95%-3% range, with potential upside if liquidity eases.
CASA ratio target of 33% by FY25
Management aims to achieve 33% CASA ratio by end of FY25 through new products and digital initiatives.
Cost-to-income ratio to be maintained around 47%
Management expects to keep cost-to-income ratio at or below 47% despite wage revision and IT investments.
Advances growth guidance of 10-11% for FY26
Management expects loan book to grow at 10-11% in FY26, consistent with historical guidance.
Return on Assets (RoA) guidance of 1.05% for FY26
Target RoA of 1.05% for FY26, with conservative approach and potential to surpass.
NIM expected to be maintained at 2.75-2.80%
Net interest margin expected to be in the range of 2.75-2.80% for FY26, with some stress in H1 but recovery in H2.
PCR target of 95%+
Provision coverage ratio targeted to cross 95% to strengthen balance sheet against shocks.
Credit growth guidance of 11-12% for FY27
Management guided for 11-12% loan growth, but expects to exceed it as in prior years.
NIM to remain in 2.5-2.6% range
Net interest margin expected to stay between 2.5% and 2.6% in FY27.
ROA above 1%
Management confident of delivering return on assets above 1% despite ECL implementation.
ECL impact of INR 10,000 crore, absorbable in one go
Expected additional provisions of INR 10,000 crore under ECL, can be absorbed in one year or staggered over four years.