Financial Data and Key Metrics Changes - The bank's average deposits grew at a healthy pace of 16% year-on-year, while average advances or assets under management (AUM) growth slowed to about 7% last year, aligning with strategic objectives to reduce the credit deposit (CD) ratio from 110% to about 95% [6][9] - The growth in AUM improved to 8% in the quarter ended June FY '26, with expectations for loan growth to continue improving [6][7] Business Line Data and Key Metrics Changes - The bank's asset quality remains healthy, with a gross non-performing loan (NPL) ratio in the retail segment, excluding agriculture, steady at 82 basis points [101][104] - The bank is seeing healthy demand from the rural side, with positive inquiries expected to increase due to better monsoon conditions [22][24] Market Data and Key Metrics Changes - The bank's credit deposit ratio is currently at 95%, with a medium-term target to return to levels of 87-88% prior to the merger [92][93] - The bank's approach to growth is focused on customer-centricity, technology, and people, with expectations for loan growth to align with system growth rates in FY '26 and exceed it in FY '27 [7][8] Company Strategy and Development Direction - The bank aims to improve its loan growth while maintaining a focus on reducing the CD ratio, with a strategic shift towards upselling products to existing customers [44][45] - The management emphasizes the importance of customer experience and technology initiatives to drive growth in various segments, including rural, MSME, and corporate [66][68] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a volatile global situation but remains optimistic about India's stable macro environment, supported by domestic factors such as normal monsoons and tax cuts [4][5] - The management expects a pickup in demand during the festive season, which could serve as a trigger for growth [20][24] Other Important Information - The bank announced an interim dividend of INR 5 per share and recommended a bonus share issue in a 1:1 ratio [10] - The bank's contingent provision increased to 57 basis points of the loan portfolio, aimed at providing resiliency and a strong reserving position for the future [99] Q&A Session Summary Question: Margin and EDLR Repricing - The management explained that the full impact of recent rate changes on the EDLR book will take one to three months to fully reflect, with a current yield change of about 20 basis points [18][19] Question: Growth Triggers - Management indicated that improved consumption demand, especially during the festive season, is expected to trigger growth, with a focus on retail and rural segments [20][21] Question: Asset Quality and NPL Recognition - The management confirmed that any one-time settlements would typically lead to NPL recognition, following RBI regulations [35] Question: Credit Cost Outlook - The management noted that credit costs are expected to remain benign, with seasonal fluctuations due to agricultural portfolios [37] Question: Loan Growth and Fee Income - The management acknowledged subdued fee income this quarter but remains optimistic about the overall outlook for the year [82][83] Question: CD Ratio Comfort Zone - The management aims to return the CD ratio to 87-88% in the medium term, with a focus on ensuring deposit growth outpaces loan growth [92][93] Question: Contingent Provision Explanation - The management clarified that the contingent provision is based on various probability scenarios and is intended to strengthen the bank's reserving position [99]