India · Delayed Price · Currency is INR AU Small Finance Bank Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 saw robust profit and loan growth, improved asset quality, and strong deposit momentum. Strategic focus remains on scaling liabilities, tech-driven efficiency, and universal bank transition, with prudent risk management and continued investments in AI and distribution.
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Q3 FY26 saw robust 23% YoY deposit and 19% loan growth, margin expansion, and improved asset quality. Profitability rose with PAT up 29% YoY, and guidance remains strong for growth, cost control, and credit quality.
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Achieved strong deposit and loan growth, with NIM and credit costs improving sequentially. Received in-principle approval for universal banking, supporting future growth and brand strength. Guidance remains positive on margins, credit costs, and expansion.
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Q1 FY25-26 delivered 31% YoY deposit and 18% YoY loan growth, with PAT up 16% YoY and ROA at 1.5%. Elevated credit costs in unsecured and southern mortgage segments led to revised credit cost guidance, but margin recovery and growth in secured segments are expected in H2.
Fiscal Year 2025
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Strong deposit and loan growth outpaced the sector, with ROA at 1.5% despite elevated credit costs. Credit costs are expected to normalize in FY 2026, while NIMs may face short-term pressure. Universal bank license decision and further tech investments are key upcoming milestones.
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Deposit and loan growth outpaced the industry, but asset quality pressures in MFI and unsecured retail led to higher credit costs and a 7% QoQ decline in PAT. Cost control and merger synergies supported profitability, with guidance for 20% loan growth and 1.6% ROA maintained.
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Q2 FY25 delivered strong growth in deposits, profitability, and operating efficiency despite macro headwinds. Credit costs remain elevated, especially in MFI and unsecured segments, but guidance for ROA and NIM is maintained. Application for Universal Bank license and Fincare integration drive future outlook.
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Board approved universal bank application, with strong Q1 performance: deposit book at INR 97,290 crore, disbursement yield up to 15.8%, and ROA at 1.6%. Deposit growth target is 25% for FY25, with cost and asset quality closely managed.