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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Profit after tax grew to ₹561 crore in Q2, with NIM rising to 5.5% and deposit growth at 21% YoY. Credit costs are declining, asset quality is stabilizing, and the bank received in-principle approval to become a universal bank, positioning it for sustainable growth.
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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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Despite a challenging macro environment, strong deposit and loan growth outpaced the sector, with improved profitability and asset quality. Credit costs are expected to normalize in FY 2026, while strategic investments and a universal bank license remain key priorities.
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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 deposit and profit growth despite macro headwinds, with improved cost efficiency and stable margins. Credit costs remain elevated, especially in MFI and unsecured segments, but guidance for ROA and loan growth is maintained.
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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.