Highlights:

The bank has recorded 6% growth in the business with 11% growth in loan book end June 2022. The share of retail, agriculture and MSME advances was healthy at 65%.

The provision coverage ratio of the bank was healthy at 86.61%.

The bank has reduced net NPA ratio to 3.93% from 5.09%.

The bank has improved credit deposit ratio to 67% from 53% last year

The risk weighted asset of the bank stood at Rs 124659 crore, which is 63.84% of the total advances reflecting the quality of loan book.

The share of retail loans stood at 28%, agriculture 19%, MSME 18% and corporate advances at 35%.

The bank is well above the target in the mandated priority sector lending targets.

The bank has also generated decent amount of income on sale of Priority Sector Lending Certificates.

The SMA category loan book of the bank has decline to Rs 13700 end June 2022 from Rs 14924 crore end March 2022 and Rs 16000 crore end June 2021.

The bank is well placed in terms of SMPA category loans above Rs 5 crore at Rs 1200 crore of which SMA 0 is Rs 700 crore, SMA 1 is Rs 300 crore and SMA 2 at Rs 200 crore.

The SMA loan book below Rs 5 crore has also declined to Rs 12500 crore.

The segment wise net NPA ratio was at 1.53% in retail segment, 9% in agriculture, 5% in MSME and 2.3% in the corporate segment.

The bank sticks to its target of reducing net NPA ratio to 3.5% by March 2023.

The bank has witnessed increase in absolute gross NPA in the quarter in the June 2022 were contributed by 3 corporate accounts namely Future Retail, Bajaj Hindustan etc.

The fresh slippage of loans stood at Rs 2100 crore and fresh slippage ratio was 1.29%. The fresh slippage from the corporate segment was Rs 1020 crore, retail segment at Rs 217 crore, agriculture Rs 326 crore and MSME Rs 530 crore.

The bank does not expect the yield on 10-year paper to increase above 8% in the current financial year which currently stands at around 7.4%. So even if the yield rises to 8% by 60 bps, there would be impact of Rs 100 to Rs 150 crore on investment book.

The bank is still under the prompt corrective action framework of the Reserve Bank of India and it is in continuous correspondence with the RBI for exiting PCA framework.

The bank has excess liquidity of Rs 40000 crore. The bank is targeting long growth of 10-12% for FY2023.

The bank expects 1.5% credit cost for FY2023

The co-l ending book of the banks stands at Rs 2340 crore end June 2022 and the bank aims to raise the book to Rs 5000 crore by December 2022. In the co-lending book, the bank does not have any loan account in the SME category.

Bank aims to improve net interest margin to 2.75% in FY2023.

Bank being under PCA Framework, the major restriction is the growing of unsecured loan book. At the time of imposing PCA framework on bank, its unsecured loan book was at 7.3% of the loan book and bank cannot cross that level. However, the other bank can grow its unsecured book up to 15%.

The bank has conducted the highest recruitment of 2600 employees mostly on the IT and tech side.

The NBFC exposure of the bank stands at 11.8% and the bank do not want to cross the limit of 12%.