Mumbai, July 22 -- In its post-earnings conference call, the bank revised its FY27 exit RoA guidance to 1.2%-1.4% from 1.6%-1.8% earlier. Management also said net interest margins are likely to remain under pressure due to higher deposit costs. It identified aggressive deposit pricing, an uncertain global environment, monsoon-related risks, and higher technology spending as key challenges going forward.

The cautious outlook prompted a domestic brokerage to downgrade the stock to 'Hold' from 'Buy', while retaining its target price of Rs 225. The brokerage also cut its FY27 and FY28 earnings estimates by 14% and 6%, respectively, and now expects the bank to deliver RoA of 1% in FY27 and 1.4% in FY28.

For the quarter ended 30 June 2026, th...