The financial institution additionally posted a 2% enhance YoY in web curiosity earnings (NII), which rose to Rs 2,336.83 crore within the June quarter from Rs 2,291.98 crore a 12 months in the past.
Regardless of the drop in backside line, the lender posted its highest-ever different earnings of Rs 1,113 crore, which was up 21.6% from the year-ago interval. Whole earnings for the quarter rose 7.6% year-on-year to Rs 7,799.61 crore.
KVS Manian, Managing Director & CEO of the financial institution, mentioned the quarter “reaffirmed the energy of our diversified mannequin.” He famous that “even in a usually delicate Q1, we noticed momentum in key segments like business banking, bank cards, and gold loans.”
“Our mid-yielding engines are firing nicely too,” Manian mentioned. “We delivered a powerful working efficiency, with enhancing productiveness. Payment earnings hit a document excessive, and CASA ratios continued to enhance steadily.”
Deposits in Q1
The financial institution’s whole deposits grew 8.03% to Rs 2.87 lakh crore, whereas web advances elevated by 9.24% to Rs 2.41 lakh crore. Inside this, retail advances rose 15.6% to Rs 81,047 crore, business banking loans jumped 30.3% to Rs 25,028 crore, and company loans grew 4.5% to Rs 83,680 crore.
The financial institution’s CASA (present account and financial savings account) base expanded 12% YoY to Rs 87,236 crore. Web curiosity margin for the quarter stood at 2.94%, whereas annualised earnings per share got here in at Rs 14.07.
Belongings in Q1
Asset high quality remained steady, with gross non-performing belongings (NPAs) at 1.91% and web NPAs at 0.48%. Provision protection ratio (excluding technical write-offs) stood at 74.41%.
Manian mentioned that “whereas credit score prices had been elevated this quarter, they had been largely pushed by slippages within the Agri and MFI portfolios.” He added, “Primarily based on present traits, we count on these slippages to average and stabilise going ahead, resulting in a normalisation in credit score prices.”
The lender’s capital adequacy ratio for the June 2025 quarter stood at 16.03%, and web value elevated 12.2% YoY to Rs 33,994 crore. Return on belongings (ROA) and return on fairness (ROE) for the quarter stood at 1% and 10.3%, respectively.
“With macro tailwinds constructing and our strategic themes gaining traction, we’re assured of accelerating development within the second half whereas staying disciplined on threat and profitability,” Manian mentioned.
