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]

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][10] - The growth rate of AUM improved to 8% in the quarter ending June FY '26, with expectations to grow advances at the system growth rate in FY '26 and higher than the system in FY '27 [6][10] 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 year-on-year [81][84] - The bank has seen a 9% year-on-year growth in retail assets, with expectations for further growth as the festive season approaches [63][68] Market Data and Key Metrics Changes - The bank's liquidity environment has improved, allowing for a more favorable credit deposit ratio, with a target to return to a range of 85-90% in the medium term [73][74] - The bank is experiencing healthy demand from both urban and rural segments, with expectations for increased inquiries and growth opportunities due to improved monsoon conditions [20][21] Company Strategy and Development Direction - The bank aims to enhance customer centricity, technology, and employee engagement as growth enablers, with a focus on upselling products to existing customers [7][36] - The management is optimistic about growth in various segments, including retail, MSME, and corporate, particularly with the onset of the festive season [22][54] Management's Comments on Operating Environment and Future Outlook - The management highlighted a stable macro environment in India, with expectations for GDP growth supported by domestic factors such as normal monsoons and tax cuts [5][6] - The management expressed confidence in improving loan growth and maintaining asset quality, despite challenges in the broader economic environment [8][81] 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 resilience for future uncertainties [79][80] Q&A Session Summary Question: Margin Repricing and EDLR - The management explained that the full impact of recent rate cuts on the EDLR book would take one to three months to materialize, with a current yield change of about 20 basis points [15][16] Question: Growth Triggers - Management indicated that growth would be supported by improved consumer demand, especially during the festive season, and a focus on retail and MSME segments [20][21] Question: Asset Quality and NPL Recognition - The management confirmed adherence to RBI regulations for NPL recognition, stating that one-time settlements would typically lead to classification downgrades [28][29] Question: Corporate Credit and CASA - The management clarified that the slowdown in corporate credit does not significantly impact CASA, as corporate contributions are a smaller segment of overall deposits [42][43] Question: Employee Growth and Strategy - The increase in employee numbers was attributed to new branch openings and a focus on enhancing customer-facing roles, with a strategic shift towards technology and customer experience [50][52] Question: Cost to Income Ratio - The management acknowledged that while cost-to-income is a priority, it may fluctuate due to necessary spending for growth initiatives, with a long-term goal to improve the ratio [70][71]