Credit growth of 18%-20% for FY24
Management expects advances and liabilities to grow 18%-20% for the full fiscal year, with strong momentum seen in Q1 and continuing into Q2.
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Full-year NIM around 3.30%
Net interest margin for FY24 is expected to be around 3.30%, with Q1 at 3.15% and improvement from Q2 onwards.
Credit cost of ~40bps for FY24
Management guided credit cost to be around 40 basis points plus or minus for the full year, consistent with previous commentary.
ROA improvement of 7-8bps in FY24 and similar in FY25
Management reiterated guidance of 7-8 basis points improvement in return on assets for FY24, with a similar improvement expected in FY25.
Credit cost guidance of 30-35 bps for FY25
Management expects credit cost to remain in the range of 30-35 basis points for the full year, consistent with Q1's 27 bps.
ROA improvement to 1.30-1.35%
Targeting return on assets to improve from current 1.27% to 1.30-1.35% over the year.
NIM to sustain near Q1 levels
Net interest margin expected to remain around Q1 levels for the next couple of quarters, with dynamic review thereafter.
Branch addition of ~100 in FY25
Plans to add approximately 100 branches in FY25, with ~40 in H1 and balance in H2.
NIM to bottom out in Q2 with 5-10 bps further decline
NIM expected to decline 5-10 bps in Q2 due to residual rate cut impact, then improve in H2 as cost of funds falls.
Credit cost guidance of ~55 bps for FY26
Full-year credit cost guided around 55 bps, with MFI/agri stress peaking and rest of book stable.
Loan growth at 1.2x nominal GDP
Growth guided at 1.2x nominal GDP, driven by mid-yield segments like gold, CV/CE, and commercial banking.
Cost-to-income ratio to remain in mid-50% range
Despite transformation investments, cost-to-income expected to stay in mid-50% range through internal optimization.
NIM to improve to 3.25% for FY24
Management expects NIM (new compute) to reach 3.25% by year-end, with gradual improvement in H2.
Credit cost guidance of 25-30 bps for H2 FY24
Full-year credit cost expected around 35-40 bps, with H2 likely in the late 20s to early 30s.
ROA target of 1.4% by FY25
Management reiterated the target of 1.4% ROA by FY25, with current trajectory ahead of schedule.
Cost-to-income ratio to improve to 50% by Q1 FY25
Management aims to bring cost-to-income down to 50% by early FY25, despite near-term pressure from partner-led businesses.
Loan growth guidance maintained at ~18%
Management reiterated loan growth guidance of around 18% for FY25, with focus on deposit mobilization rather than slowing advances.
Credit cost guidance unchanged at 29-30bps
Full-year credit cost guidance remains at 29-30 basis points, supported by strong asset quality and conservative underwriting.
ROA expected around 1.8% for FY25
ROA guided at ~1.8% for the full year, with potential slight improvement if rate cuts occur later.
Infrastructure bond issuance of INR 1,500 crore
Bank plans to raise INR 1,500 crore via infrastructure bonds to fund infrastructure assets, a first for the bank.
Full-year credit cost guidance maintained at 55 bps
Management reiterated full-year credit cost guidance of 55 bps despite Q2 coming in at 50 bps, citing lingering MFI stress.
NIM expected to improve further
Deposit repricing tailwinds over next two quarters and asset mix shift should support continued NIM improvement.
Capital raise to be considered by board on Oct 24
Board meeting scheduled for October 24 to discuss capital raise; details and rationale to be disclosed post-meeting.
ROA target of 1.4% by end of 2024
Management confirmed they are on track to achieve 1.4% ROA by end of 2024, with an aspirational target of 1.5% over the next 18 months.
Credit-deposit ratio to moderate to ~80% by calendar 2024
The bank plans to bring its CD ratio down from ~83% to ~80% by calendar 2024 through balanced growth in deposits and loans.
Loan growth guidance of 18% maintained
Despite deposit cost pressures, the bank expects to sustain loan growth of around 18%, with possible mix adjustments.
Full-year credit cost guidance maintained at 40-45 bps
Despite accelerated provisions of INR 292 crore in Q3, management expects FY25 credit cost to remain within 40-45 basis points.
Medium-term loan growth target of 1.5x system growth
Management targets loan growth at 1.5 times the banking system growth rate over the medium term, post reorientation.
NIM improvement through asset-liability reorientation
Measures such as shifting to fixed-rate auto loans and improving average CASA are expected to support NIMs, though rate cuts pose a risk.
NIM to sustain around current levels in Q4
Management expects NIM to remain near 3.18% in Q4 FY26, as the full impact of the December rate cut will be offset by liability mix and asset repricing actions.
Full-year credit cost guidance of 55-60 bps
Credit cost for FY26 is expected to be in the range of 55-60 bps, with Q4 likely lower than Q3's 47 bps.
Loan growth of ~16% for FY27
Management indicated a target of high-teens loan growth, around 16% for the next fiscal year, driven by mid-yield segments.
Blackstone fund infusion expected in Q4 FY26
The first tranche of strategic investment from Blackstone is expected to close in Q4 FY26, pending final regulatory approvals.
ROA expansion of 4-5 bps annually
Management expects ROA to continue expanding by 4-5 basis points each year, driven by income growth and cost control.
Credit cost around 30 bps in FY25
Guidance for credit cost to normalize to around 30 basis points in FY25, up from 23 bps in FY24.
Fee income growth of 20-25% in FY25
Core fee income is expected to grow 20-25% year-on-year in FY25, driven by card fees, loan processing fees, and other products.
Branch expansion of ~100 in FY25
Plans to add at least 100 new branches in FY25, continuing the network expansion strategy.
Loan growth to improve from 12%
Management expects overall loan growth to be better than the 12% reported for FY25, driven by mid-yielding segments and revival in gold loans.
Cost-to-income ratio around 53%
CFO guided cost-to-income ratio to remain in the 52.5%-53.5% range over the next few quarters.
CASA ratio target of 36% over 3 years
MD reiterated the strategic target to reach 36% CASA ratio over three years, from current ~30%.
Credit cost guidance of 35-40 bps
CFO reiterated credit cost guidance of 35-40 bps for FY25, which was achieved at 38 bps.
NIM expansion to continue
Management expects further NIM improvement through deposit repricing, liability mix shift, and asset mix optimization.
100 new branches in FY27
Planned branch expansion of about 100 branches in the next fiscal year, supported by data-driven network strategy.
Credit cost guidance maintained at 50-60 bps
Credit cost guidance remains unchanged at 50-60 basis points, though subject to review based on geopolitical clarity.
CASA ratio target of 36%
Management reiterated the medium-term target of 36% CASA ratio, achievable given recent strong momentum.