Bank’s Q1FY27 Performance: Strong Growth & Improved Asset Quality

A bank reported strong Q1FY27 financial performance with GNPA easing to 1.3% and Net NPA to 0.2%. Net advances grew 18.3% Y-o-Y to Rs 2.85 trn, NIM boosted to 2.7%, and operating profit climbed 25.5%. Total deposits rose 14.3% to Rs 3.15 trn, with a positive future outlook.

Asset Quality Performance

Possession high quality improved during the quarter, with the gross non-performing possession (GNPA) ratio relieving to 1.3 per cent from 1.6 per cent a year ago, while continuing to be unmodified from the March quarter. The internet NPA ratio stood at 0.2 per cent, compared with 0.3 per cent in the year-ago quarter and unmodified sequentially.

Advances Growth & Profitability

Net breakthroughs stood at Rs 2.85 trillion at the end of June 2026, signing up a development of 18.3 per cent Y-o-Y and 4.3 per cent Q-o-Q. Company and Institutional Financial (CIB) advances led the growth, rising 41.4 per cent Y-o-Y, complied with by Commercial Banking, which expanded 16.9 per cent.

The bank’s net interest margin (NIM) boosted to 2.7 per cent in Q1FY27 from 2.5 percent a year back, while continuing to be flat sequentially. Operating profit climbed up 25.5 per cent Y-o-Y to Rs 1,704 crore. The cost-to-income ratio boosted to 62.8 per cent from 67.1 per cent in the equivalent quarter in 2014 and 63 per cent in the previous quarter.

The cost-to-income proportion improved to 62.8 per cent from 67.1 per cent in the matching quarter last year and 63 per cent in the previous quarter.

Deposit Trends & Outlook

Complete deposits raised 14.3 percent Y-o-Y to Rs 3.15 trn, although they declined 1.1 percent sequentially. Of the bank’s complete deposits of Rs 3.15 trn, retail and branch banking-led deposits accounted for 59.2 per cent at Rs 1.87 trn, while wholesale deposits stood at Rs 1.22 trn and the CASA proportion was 32.7 per cent.

Possession high quality boosted throughout the quarter, with the gross non-performing property (GNPA) proportion easing to 1.3 per cent from 1.6 per cent a year ago, while remaining unchanged from the March quarter. The internet NPA proportion stood at 0.2 per cent, compared with 0.3 per cent in the year-ago quarter and unchanged sequentially.

Going onward, I think we will see secular growth throughout fields and sectors in the coming couple of quarters. It is spread across customers and varied throughout sectors, broadly in line with the sectoral development we are seeing in the country.”