Q : Are there any other segments besides commercial vehicles showing stress? Will personal loans see growth? A : Shanti Ekambaram, Deputy Managing Director, mentioned that no other segments are showing stress. Personal loans are a core offering, and the bank is growing disbursements month-on-month, with plans to continue expanding based on analytics and underwriting.

Q : Could you elaborate on your provisioning policy, especially for unsecured loans? A : Devang Gheewalla, CFO, explained that the bank follows an aggressive provisioning policy, providing 100% for unsecured assets at 180 days. Retail write-offs occur after a lookout period, while secured assets are assessed case-by-case.

Q : How do you plan to grow market share without taking excessive risks, given the current ROA levels? A : Ashok Vaswani, CEO, emphasized that the bank aims to grow at 1.5 to 2 times nominal GDP, focusing on increasing market share rather than expanding the market. The bank is also focusing on non-interest income and cost optimization to enhance ROA.

Q : How is the bank preparing for the RBI's bank subsidiary norms? A : Ashok Vaswani, CEO, stated that the overlap in business across entities is minimal, and the bank is prepared to consolidate operations into the bank if required. The bank has provided feedback on the circular and is operationally ready for any changes.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus .