On business front, the business growth moderated to 10% at end June 2026 from 11% at end June 2026, as the loan book growth moderated to 13%. CASA ratio of the bank eased marginally to 35.5% at end June 2026 from 35.8% at end June 2025.

NII growth rises: Interest income increased 3% to Rs 32897.26 crore, while interest expenses moved up 3% to Rs 22098.90 crore in Q1FY2027. NII improved 2% to Rs 10798.36 crore in Q1FY2027.

Margins improve sequentially: The bank has shown 34 bps YoY decline in cost of deposits to 4.99%, while yield on advances declined 61 bps YoY to 7.53% in Q1FY2027. Thus, the NIM has eased 20 bps YoY to 2.50%, while rose 3 bps qoq to 2.50% in Q1FY2027.

Moderate growth in the core fee income: The non-interest income of the bank declined 18% to Rs 4333.47 crore in Q1FY2027, as the treasury income eased 52% to Rs 772 crore, the recoveries income declined 24% to Rs 908 crore and other income dipped 54% to Rs 6 crore. However, the bank has posted 4% growth in core fee income to Rs 2339 crore and forex income moved up 49% to Rs 309 crore.

Expense ratio improves: The operating expenses of the bank declined 13% to Rs 7612.63 crore, as other expenses fell 15% to Rs 3077.25 crore, while employee expenses dipped 12% to Rs 4535.38 crore in Q1FY2027. Cost to income ratio improved to 50.3% in Q1FY2027 compared with 55.3% in Q1FY2026. Operating Profit moved up 6% to Rs 7519.20 crore.

Provisions and contingencies increase: The bank has shown 67% increase in provisions to Rs 541 crore. The loan loss provisions moved up 100% to Rs 792 crore, while the bank has written back other provisions of Rs 251 crore in Q1FY2027.

PBT increased 3% to Rs 6978.01 crore in Q1FY2027. Effective tax rate declined to 24.7% in Q1FY2027 from 75.2% in Q1FY2026. Net Profit increased 214% YoY to Rs 5253.29 crore in Q1FY2027.

Asset quality improves: The bank has improved asset quality in Q1FY2027.

The fresh slippages of loans stood at Rs 2080 crore in Q1FY2027 compared with Rs 2758 crore in previous quarter and Rs 1886 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 843 crore, upgradations at Rs 746 crore, while the write-off of loans was at Rs 2235 crore in Q1FY2027.

Provision coverage ratio was steady at 97.23% at end June 2026 compared to 97.14% a quarter ago and 96.88% a year ago.

The capital adequacy ratio of the bank stood at 18.1% with Tier I ratio at 16.0% at end June 2026.

The risk weighted assets of the bank has increased 8% YoY to Rs 917780 crore end June 2026,

Business Highlights:

Business growth eases: The business of the bank has increased at a slower pace of 10% YoY to Rs 2997969 crore end June 2026, as advances growth eased to 13% to Rs 1273132 crore and deposits growth moderated to 9% to Rs 1724837 crore at end June 2026. With the faster growth in advances, the credit to deposit ratio rose to 73.8% at end June 2026 from 71.1% at end June 2025.

CASA deposits ratio declines: The CASA deposits of the bank increased 8% YoY to Rs 613116 crore at end June 2026. The current account deposits moved up 12% to Rs 79294 crore, while saving account deposits increased 7% to Rs 530321 crore end June 2026. The CASA ratio eased to 35.5% at end June 2026 compared to 35.8% at end June 2025, while declined from 35.6% at end June 2026. The term deposits have increased 9% to Rs 1111721 crore end June 2026.

RAM loan share rises: Within the loan book, the retail loans increased 9% YoY to Rs 285880 crore at end June 2026, while credit to agriculture increased 12% to Rs 199582 crore and MSME credit increased 20% to Rs 203025 crore. The corporate credit has also increased 10% to Rs 515372 crore end June 2026. The overseas credit has increased 36% to Rs 69273 crore end June 2026. The share of retail, agriculture and MSME (RAM) improved to 54.1% at end June 2026 compared to 54.0% at end June 2025.

Investment book of the bank declined 5% YoY to Rs 489289 crore at end June 2026. The SLR book slipped 7% to Rs 346707 crore, while non SLR book moved up 2% to Rs 135283 crore at end June 2026. The AFS book dipped 6% to Rs 110097 crore, while HTM book rose declined 3% to Rs 347347 crore at end June 2026. The duration of the AFS investment portfolio stood at 3.25 years end June 2026 compared with 3.52 years at end June 2025.

Branch expansion: The bank has added 35 branches and reduced 460 ATMs in Q1FY2027, taking overall tally to 10359 branches and 10605 ATM`s end June 2026.

Book value of the bank stood at Rs 120.2 per share at end June 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 116.1 per share at end June 2026.

Financial Performance FY2026:

Bank has posted 2% increase in net profit to Rs 16903.99 crore in the year ended March 2026 (FY2026). The net interest income declined 2% to Rs 41959.77 crore, while non-interest income moved up 10% to Rs 17881.97 crore, leading net total income to increase 1% to Rs 59841.74 crore in FY2026. The operating expenses declined 2% to Rs 31464.11 crore, while provision and contingencies jumped 52% to Rs 2539.93 crore. PBT increased 3% to Rs 25837.70 crore in FY2026. The cost-to-income ratio improved to 52.6% in FY2026 compared to 54.6% in FY2025. An effective tax rate rose to 36.8% in FY2026 compared to 33.9% in FY2025. The net profit has increased 2% to Rs 16903.99 crore in FY2026.