Key Announcements
Leadership Transition: CEO selection is underway; recommendations submitted to RBI
Governance Overhaul: Post derivative accounting issues, internal controls and treasury systems are being upgraded
Cost Discipline: Bank aims to reduce operating expense growth to single digits
Microfinance Strategy: Cautious stance continues; disbursements down 36% QoQ
Short-Term Caution: Asset quality deterioration, weak fee income, and succession uncertainty suggest limited upside in the near term.
Microfinance Risk: Continued stress in MFI segment may weigh on performance through FY26.
Valuation Watch: Stock trades at ~0.9x FY27 book value; not cheap given muted return ratios
Recovery Signals: Sequential improvement in NII and NIM, reduced slippages, and treasury gains hint at operational normalization.