reported Q3 profit of ₹374 crore (up ~9% YoY), supported by higher operating profit and a sharp improvement in asset quality. The bigger signal is the balance-sheet clean-up: GNPA fell to ~2.7% (from 4.3% YoY) and NNPA to 0.45% (from 1.25%), showing the risk cycle is turning in its favour. What actually drove earnings Operating profit rose ~10% to ₹584 crore, helped by a ~19% jump in non-interest income to ₹486 crore, while NII was broadly flat-to-slightly up at ₹881 crore. So this quarter is more “fee/other income + credit cost comfort” than a pure NIM-led earnings spike. Growth mix: steady, but not explosive Gross advances grew ~11% YoY to ₹96,764 crore, with gold loans (22% of book) up 26% to ₹20,952 crore and corporate loans (40% of book) up 10% to ₹38,353 crore. That mix matters because gold loans can drive growth quickly but also add volatility in a stress scenario—so sustained profitability will depend on how well the bank balances secured retail growth with granular corporate underwriting. Source: Economic Times No Recommendation

#FundamentalViews#EquityResearch

493 likes·70 comments