Advances grew by 8% YoY supported by 18% growth in Non-MFI advances

Deposits grew by 18% YoY; Growth in Retail TD of 20% YoY

Bank made one time additional provisions of Rs. 330 Crs during the quarter, resulting in PAT miss

1. Key Highlights for Q1FY26: 

• Secured loan advances forms 91% of the total advances of the Bank
• Gross Advances growth remained muted at 8% YoY and flat QoQ as Microfinance loan book contracts. Non Microfinance book grew 18% YoY, led by 22% growth in SBL over previous year.
• Overall deposits registered a growth of 18% YoY & 3% QoQ 

2. Business Highlights:

• Vehicle Finance portfolio has crossed Rs. 9500 Crs during the quarter.
• Used Car Advances crossed Rs. 2000 Crs, registered a growth of 50% YoY.
• Used CV Advances registered a growth of 26% YoY
• CASA ratio stable at 29%; CA balances grew 92%
• Retail Term Deposits posted a growth of 20% YoY to Rs. 19,354 Crs

   Key Ratios:

• NIM for the quarter stood at 6.55%
• Cost to Income stood at 70.62% in Q1FY26 as compared to 70.28% in Q4FY25 and 65.75% in Q1FY25

Capital:

• Networth of the Bank stands at Rs. 5,849 Crs
• As of June 30, 2025, Total CRAR at 20.48% | Tier I at 17.16% and Tier II at 3.32%
• Tier II capital raised of Rs. 500 Cr in July ’25, improving CAR further by about 1.7% 

 Treasury & Liquidity:

• The Bank’s Certificate of Deposit (CD) programme has highest rating at A1+ from India Ratings, CareEdge Ratings & CRISIL
• Liquidity Coverage Ratio (LCR) as on 30.06.2025 is 209.5%
• Profit on sale of Investments for the quarter is Rs. 116 Crs

3. Profit & Loss:

• Net Income and Total Opex grew by 8% and 16% YoY in Q1FY26
• The Bank has made Additional Standard Asset Provision (One-time Impact) of Rs.185 Crs in Microfinance and Rs.145 Crs for Additional NPA Provision due to change in Provisioning norms, resulting in a Loss of Rs. 224 Cr for the quarter 

4. Asset Quality:
   • GNPA improved by 7 bps QoQ to 2.82% in Q1FY26 as compared to 2.89% in Q4FY25
   • NNPA improved by 3 bps QoQ to 0.95% in Q1FY26 as compared to 0.98% in Q4FY25

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