<h1>Private lender's Q1 profit drops 65% to Rs 372 crore amid microfinance stress</h1> A private sector lender reported a significant decline in first quarter net profit, falling from Rs 1,063 crore in the previous year to Rs 372 crore in Q1 2025-26. The bank's MD&CEO attributed this 65% drop to stress in the emerging entrepreneurs business, primarily the microfinance portfolio. The executive noted the quarters are not strictly comparable and expressed cautious optimism for subsequent quarters. The bank's total business reached Rs 2.88 lakh crore by quarter-end. During the period, the institution made technical write-offs of Rs 1,047 crore. Management highlighted sequential profitability improvements, increased secured loan proportions, portfolio diversification, and strong capital adequacy ratios. The bank continues focusing on retail growth, product innovation, prudent risk management, and operational efficiency to support future expansion.