Highlights:

Bank has recorded 14% growth in the Casa deposits while improving the Casa deposits ratio by 370 bps to 34.5% end September 2022 over March 2022.

The provision coverage ratio has improved by 770 bps to 72.95% end September 2022. Bank aims to improve provision coverage ratio to 75%.

The bank has reduced gross NPA ratio to 5.67% and net NPA ratio to 2.51% end September 2022.

The bank has built new loan book of Rs 33768 crore with NIM of 3.6%, GNPA of 0.03.% and SMA2 of 0.32%.

The bank has recorded disbursement of Rs 26089 crore in H1FY2023 vs Rs 8809 crore during H1Y22 led by corporate Rs 15384 crore (Rs 3353 crore), gold - Rs 5746 crore (Rs 3074 Cr), business segment - Rs 2713 crore (Rs 1100 crore), other retail Rs 606 crore (Rs 418 crore), PL Rs 702 crore (Rs 204 crore), agriculture - Rs 352 crore vs (Rs 237 crore), LAP Rs 173 crore (Rs 151 crore ), homes loans Rs 282 crore (Rs 212 crore), Vehicle loans – Rs 131 crore (Rs 59 crore)

The bank is witnessing strong traction in the gold loan and personal loan book

The credit card business launched in FY22 is also showing the good traction. The bank has issued more than 1.5 lakh credit cards. The credit card loan book stands at Rs 497 crore.

Personal loan book increased by 53% to touch Rs 1427 crore during H1 FY 23 with yield of 14% on new book.

The disbursement SME book stands at Rs 450 crore per months compared to Rs 185 crore in the corresponding quarter last year.

The NRI deposit remains the core strength of the bank which amounts to Rs 27500 crore accounting for 31% of the total deposits of the bank.

The bank has reduced the modified duration of the AFS investment book to 2.44 years from 2.98 years last year.

The slippages of loans declined 34% yoy to Rs 350 crore from Rs 531 crore last year.

The restructured loan book of the bank stands at Rs 1997 crore of which business banking loan stands at Rs 1279 crore, personal loans Rs 308 crore and corporate loans at 410 crore. The bank is holding provisions of Rs 594 crore against the restructured loans.

The bank aims to reduce gross NPA ratio below 5% and net NPA ratio closed to 2% by March 2023.

The bank has improved NIM by 72 bps yoy to 3.21% and the bank is targeting to maintain NIM above 3%.

The bank expects the momentum in disbursement and collections efficiency to continue to achieve the desired targets.

The bank had a guided at fresh slippages of loans amounting to Rs 1600 crore and provisioning of Rs 1000 crore for FY2023. The bank expects the fresh slippages and and provisions to be well within the guidance for FY23.

The bank has continued to maintain the guidance of 20% slippage rate in the restructured loan book.

The bank is targeting recoveries and upgradations of Rs 1400 crore for FY2023. With recoveries and upgradations of Rs 600 crore in the first half, the bank is on track to achieve the target with the resolution of some large accounts in the second half.

The bank is target in double digit loan growth of 12-15% for FY2023.

The bank would be comfortable growing at two times of GDP growth. The bank does not want to chase growth at the cost of quality.

The bank aims to maintain credit deposit ratio in the range of 70 to 75%