The bank's total customer business, comprising loans and customer deposits, grew 18.6% YoY to ₹6,04,776 crore as of June 30, 2026, compared with ₹5,10,031 crore a year earlier. Loans and advances rose 20.6% to ₹3,05,370 crore, led by growth in mortgage, vehicle, corporate and consumer loans. The Retail, Agri and MSME (RAM) portfolio increased 18.2% to ₹2,41,118 crore, while the wholesale loan book expanded 30.4% to ₹64,252 crore.
Asset quality continued to improve during the quarter. Gross Non-Performing Assets (GNPA) declined to 1.51% from 1.97% a year ago, while Net NPA fell to 0.44% from 0.55%. The RAM portfolio also witnessed improvement, with Gross NPA reducing to 1.40% and Net NPA to 0.52%.
Customer deposits increased 16.6% YoY to ₹2,99,405 crore, while CASA deposits grew 24.6% to ₹1,58,492 crore, pushing the CASA ratio to 50.8%. The bank's cost of funds improved to 5.96%, reflecting a decline of 46 basis points from the previous year.
Profitability indicators also strengthened. Net Interest Margin (NIM) improved to 5.96%, while the cost-to-income ratio declined to 70.7% from 73.8% a year ago. Provisions as a percentage of average loans reduced significantly to 1.53%.
During the quarter, the bank received ₹514.8 crore under the CGFMU scheme against its microfinance portfolio. It also created a ₹515 crore contingency provision to address potential macroeconomic and geopolitical uncertainties.
The bank reported a Return on Assets (ROA) of 1.06%, compared to 0.54% in Q1 FY26, while its capital adequacy ratio stood at 15.05%, with a CET-I ratio of 13.33%.
Commenting on the results, Managing Director and CEO V. Vaidyanathan said the bank continues to build a high-quality institution with strong governance standards. He noted that improving asset quality, declining provisions and better operating leverage helped the bank achieve record profitability, with ROA crossing the 1% mark during the quarter.