Highlights

The bank has recorded highest ever quarterly net profit in Q4FY2022.

The operating profit and the growth in the bottomline was impacted due to accelerated one off family pension provision of Rs 140 crore in Q4FY2022, which could have been amortized to show higher profit growth

However, the bank has still achieved committed ROE improvement driven by asset quality holding up well.

The bank is seeing reasonable momentum in credit quality and expect asset quality to continue remain healthy in FY2023 and beyond.

The bank has always focused on building high quality team over the year.

The bank is entering FY2023 being well provisioned.

Challenge for FY23 is interest rate rising and need high quality liability franchise. Bank has granular liability franchise and strong ability to grow liability.

The bank expects to improve RoA to 1.07-1.08% in FY2023 with exit RoA of 1.12-1.13%, while its on track to improve RoA to 1.2-1.25% in FY2024.

The bank has recorded 100 bps rise in CRAR in FY22 driven by anchor investor and retained earnings.

The bank is targeting 15%+ credit growth in FY2023. All segment would grow. Corporate will grow depending on opportunities in the market.

The credit growth for FY2022 including securitization of Rs 1500 crore was higher at 12% against actual growth of 9%.

The bank has raised saving account deposit rate by 15 bps, but still has lowest saving account deposit rate in the country.

The external benchmark linked loan book stands at 46%, MCLR linked at 18% and fixed rate at 27%.

The bank expects to improve margin above 3.25%+ in FY2023.

Cost to income ratio is expected be in early 50s at 50-51% in FY23 and improve to 48% in FY2024.

The bank has invested materially in fintech partnerships. It expects 25% of incremental deposits to be contributed by fintech partners from 5% in FY22, which is equivalent to adding 300 branches.

On lending front also, the bank expects 40-45% of incremental lending in some products to be contributed by fintech partners.

The bank is targeting to improve cost income for partnership to 60% in FY2023 from 65% in FY2022 and improve further to 45% and better in FY2024.

The bank is witnessing 17000-18000 new liability customer addition daily.

The bank would grow network by 5% every year.

The forex income growth is expected to be 15-20%, while the treasury income opportunities will not be much in FY2023.

The bank is targeting growth of 17-18% in CASA deposits for FY2022. It has improved CASA ratio by 330 bps in last two years and aims to further improve by 100 bps to 39% in FY2023.

As per the bank, about 60-65% of term deposits has original maturities of 1 year and residual maturity would be less than one year.