Key Highlights – Q2 FY27
- Profitability: Net profit was 71,386.09 crore, the highest ever, up 45.10% YoY and 17.77% QoQ.
Earnings per share rose 44.34% to 722.26. Operating profit grew 35.35% to 72,225.37 crore. - Core Earnings Engine: Net Interest Income grew 26.38% to 73,153.40 crore, ahead of advances growth of 21.66%.
- Margin Expansion: NIM expanded 26 bps YoY to 3.32%. Cost of Funds fell 40 bps YoY. Cost of Deposits declined 39 bps YoY to 5.18%.
- Record Other Income: Other income reached its highest-ever level of $1,490.44 crore, up 37.73% YoY. Fee income grew 31.86% to 21,167.71 crore. Fee income to average earning assets is at an all-time high of 1.11%.
- Asset Quality at Decadal Best:
Gross NPA improved to 1.32% and Net NPA to 0.17%, both decadal lows. These are improvements of 51 bps and 31 bps YoY respectively. - Fortified Coverage: The Provision Coverage Ratio (excluding TWO) strengthened to 86.78%, up 1,333 bps YoY. Coverage including technical write-offs stands at 94.49%. Credit cost declined 19 bps YoY to 0.31%.
- Balance Sheet Scale: Total business franchise now stands at over 76.4 lakh crore up 20.12% YoY.
Total deposits stood at 73,42,693.56 crore, up 18.61% YoY. Gross advances crossed 73 lakh crore to reach 83,01,687.80 crore, up 21.66% YoY. - CASA Franchise: CASA balances reached $1,09,803.15 crore, up 22.56% YoY and growing faster than the overall deposit book. The CASA ratio improved 103 bps YoY to 32.04%. Average CASA crossed 71 lakh crore.
- NR Franchise: NR deposits (NRE and ONR) reached 21,19,055.98 crore, up 26.63% YoY. FCNR(B)
deposits rose 239.14% YoY to $23,547.72 crore. - Chosen Segments Delivering: Granular, higher-yielding businesses continued to lead growth.
- Gold Loans grew 37.13% YoY.
- LAP grew 32.21% YoY.
Credit Cards grew 28.27% YoY.
Commercial Banking grew 25.46% YoY.
CV/CE grew 21.74% YoY.
Corporate & Institutional Banking grew 17.19% YoY to $1,04,666.02 crore.
Business Banking returned to growth at 12.39% YoY. - Operating Efficiency: The Cost-to-Income ratio improved 196 bps YoY to 52.08%.
- Return Metrics: RoA improved 23 bps YoY to 1.32%. RoE expanded 256 bps YoY to 13.57%. Book value per share grew 17.48% YoY to $166.32.
- Capital: CRAR stands at 16.84% and Tier I at 15.76%, up 113 bps and 139 bps YoY respectively.
- Network: 12 branches were added during the quarter, taking the network to 1,662 banking outlets.KVS Manian, Managing Director & CEO, said, “This quarter marks several milestones for the Bank: our highest-ever profit, our total business franchise now stands at over 26.4 lakh crore and advances crossing 13 lakh crore. More importantly, the growth is coming from the core. Net interest income grew 26% and fee income 32%, and fee income relative to our earning assets is at an all-time high.”
“Gross and net NPA are at their lowest levels in a decade, slippages are down 27% and provision coverage stands at 87%. We are growing faster while keeping the quality of the book intact.”
“Our chosen segments are delivering as intended, and the CASA and NR franchises continue to deepen. As the rate environment turns, we enter the second half of the year with a strong capital position, a granular balance sheet and good momentum in our core business.”
