Highlights:

The bank has done various structural changes for asset build up. The bank was following the branch base model earlier with branches responsible for assets and liabilities growth and that model was not conducive for asset growth.

Now, the bank has formed dedicated asset verticals for all retail asset businesses in which branches would act as another channel to handle the leads and grow business. The fresh talent has been recruited from outside to drive retail businesses.

The MSME and Corporate Banking verticals have been formed with dedicated sales structure across the country.

The bank has also set up a separate data science vertical to help into analytics in the area of assets, liabilities and collections.

With the necessary structural changes in place, the bank is targeting loan growth of 10% for FY2022 and the stronger growth of 18-20% ahead

The bank would focus on building up low cost Casa deposits, focus on gold lending, raise share of NRI deposits, improve operating efficiency and asset quality with focus on granular deposits.

The bank has raised capital of Rs 240 crore in the quarter ended March 2021 from marquee investors. The bank has a target to raise Rs 750 crore of capital and the balance capital would be raised at appropriate time.

The bank has recorded all time high Casa ratio of 30% end March 2021, which is historically high for the bank.

The bank has added 3.2 Lakh new saving accounts in the year ended March 2021. The bank is replacing bulk deposit with retail deposits and bulk corporate assets exposures will be replaced with diversified retail loan book.

The bank has completely run down certificate of deposits during FY2021 and is in the process of streamlining bulk deposits.

The loan book of the bank declined mainly driven by dip in the corporate loans which is compensated by higher loan growth in the gold segment recording 15% growth.

The large corporate loan book is continuously declining from 27 % in FY2015 to 5% in FY2021.

NRI deposits are growing strongly which constituted 31 % of the total deposits end March 2021.

Against the guidance of slippages + restructuring of Rs 2500 crore for H2FY2021, the slippages and restructuring stood at Rs 2473 crore.

The bank has conducted technical write-offs of Rs 975 crore in FY2021.

The bank has posted healthy 25% growth in the core fee income for Q4FY2021.

The bank aims to raise calculated provision coverage ratio to 38% by March 2022 from existing 34%. The bank has already completed provisioning for fraud accounts.

The bank expects provisions to be elevated for FY2022. The credit cost is expected at 2.2-2.3% for FY2022.

The collection efficiency in the retail segment is much better which is crossing 97-98%. The collection efficiency in the housing segment is above 99.5%.

The overall collection in the April and May 2021 is lower than the March quarter.

The restructured loan book of the bank stands at Rs 1277 crore end March 2021. The flood related restructuring stands at Rs 87 crore, project loan Rs 77 crore, MSME is Rs 762 crore, covid retail Rs 18 crore, covid MSME Rs 256 crore and other Rs 77 crore. The bank expects slippage rate of 30% in the food related restructuring and 25% for the other restructured loans.

The bank expects to restructure about Rs 575-600 crore of loans under Resolution Framework 2.0.