NII growth improves as NIM rises: Interest income declined 4% to Rs 7543.22 crore, while interest expenses dipped 9% to Rs 5077.62 crore in Q3FY2026. NII improved 11% to Rs 2465.60 crore in Q3FY2026.

Margins improve: The bank has shown 50 bps YoY decline in cost of deposits to 5.60%, while yield on advances declined 80 bps YoY to 9.30% in Q3FY2026. Thus, the NIM has improved 20 bps YoY to 2.60%, while rose 10 bps qoq to 2.60% in Q3FY2026.

Healthy growth in the core fee income: The non-interest income of the bank increased 8% to Rs 1632.62 crore in Q3FY2026. Bank has posted strong 12% growth in core fee income to Rs 1317 crore. However, the treasury income eased 14% to Rs 95 crore and forex income fell 2% to Rs 221 crore in Q3FY2026.

Expense ratio improves: The operating expenses of the bank increased 8% to Rs 2864.60 crore, as other expenses moved up 3% to Rs 1695.5 crore, while employee expenses jumped 16% to Rs 1169.1 crore in Q3FY2026. Opex includes Rs 155 crore towards incremental Gratuity provision due to change in wage definitions under the new Labour codes. Cost to income ratio improved to 69.9% in Q3FY2026 compared with 71.1% in Q3FY2025. Operating Profit moved up 14% to Rs 1233.62 crore.

Provisions and contingencies decline: The bank has shown 92% decline in provisions to Rs 22 crore. The loan loss provisions dipped 31% to Rs 533 crore, while standard asset provisions declined 33% to Rs 54 crore. Further, the bank has written back investment provisions of Rs 566 crore in Q3FY2026.

PBT increased 48% to Rs 1211.73 crore in Q3FY2026. Effective tax rate declined to 21.5% in Q3FY2026 from 25.4% in Q3FY2025. Net Profit increased 55% YoY to Rs 951.62 crore in Q3FY2026.

Asset quality improves: The bank has improved asset quality in Q3FY2026.

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Business Highlights:

Business growth eases: The business of the bank has increased at a slower pace of 5% YoY to Rs 549975 crore end December 2025, as advances growth eased to 5% to Rs 257451 crore and deposits growth also moderated to 6% to Rs 292524 crore at end December 2025. With the slower growth in advances, the credit to deposit ratio eased to 88.0% at end December 2025 from 88.3% at end December 2024.

CASA deposits ratio improves: The CASA deposits of the bank increased 9% YoY to Rs 99483 crore at end December 2025. The current account deposits moved up 3% to Rs 43912 crore, while saving account deposits increased 13% to Rs 55796 crore end December 2025. The CASA ratio improved to 34.0% at end December 2025 compared to 33.1% at end December 2024, while increased from 33.7% at end September 2025. The term deposits have increased 4% to Rs 193041 crore end December 2025.

Loan growth moderates: Within the loan book, the retail loans increased 2% YoY to Rs 120865 crore at end December 2025, while credit to MSME increased 14% to Rs 65962 crore. The corporate credit rose 3% to Rs 70625 crore end December 2025. The share of retail, agriculture and MSME (RAM) improved to 72.6% at end December 2025 compared to 72.0% at end December 2024, while that of corporate loans eased to 27.4% at end December 2025 compared to 28.0% at end December 2024.

Investment book of the bank increased 11% YoY to Rs 91157 crore at end December 2025. The SLR book moved up 13% to Rs 80698 crore, while non SLR book was flat at Rs 10459 crore at end December 2025.

Branch expansion: The bank has added 33 branches and added 35 ATMs in Q3FY2026, taking overall tally to 1328 branches and 1351 ATM`s end December 2025.

Book value of the bank stood at Rs 16.0 per share at end December 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 15.8 per share at end December 2025.

Financial Performance 9MFY2026:

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