Q2 FY27 profit rises 53%; loan margin falls 9 basis points sequentially
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Q2 FY27 profit after tax rose 53% year on year to Rs858 crore; first-half profit was Rs1,654 crore, up 45%. Deposits grew 29% and loans 25%. Loan margin was 5.8%, down 9 basis points from Q1 but up 33 basis points year on year. Gross bad loans eased to 1.99% and return on assets rose to 1.7%. Management kept full-year loan-loss charge guidance near 90 basis points, targets about 25% deposit growth and sees rate rises supporting margins.
Profit growth, better asset quality and a positive rating outlook support shareholders, but deposit costs and fixed-rate loans may constrain margins.