Highlights:

Bank has recorded 10% growth in the business to touch Rs 1.76 lakh crore. The deposits have increased by 9% to Rs 0.99 lakh crore, while the advance increased 11% to Rs 77686 crore end December 2023.

The CASA deposits of the bank have increased 3%. The net interest margins stood at 3.19% in Q3FY2024.

The provision coverage ratio excluding write offs has increased by 688 bps over a year ago to 67%, while including write offs it has increased to 78% end December 2023.

The return on asset has improved to 1.07% and return on equity to 16.38% in Q3FY2024.

The bank has continued to grow its gold loan book rising to Rs 15369 crore end December 2023. The average maturity of the gold loan book is 6 months.

The bank had launched its pre approved personal loan product in December 2021 and the book now stands at Rs 2186 crore.

The bank had launched Its credit card business in 2022 and it has issued 377134 cards with the total spends at Rs 22780 per card. The credit card outstanding has increased to Rs 1427 crore end December 2023.

The core deposits increased 7% to Rs 95088 crore. The NRI deposits stood at Rs 29236 crore end December 2023.

The fresh slippages reduced to the one of the lowest levels in recent past at Rs 267 crore in Q3FY2024.

Restructured loan book of the bank stood at Rs 894 crore with the provisions of Rs 451 crore.

The treasury profits were at Rs 113 crore in Q3FY2024.

The bank has witnessed an increase in cost of funds to 5.1 8% and it is likely to continue going up forward on account of a repricing of deposits. The bank has observed fraud event of Rs 28.6 crore in one of the branch and it has been fully provided.

The operating expenses impacted due to hike in provision for wage to 17% from 15% earlier. The one time extra provision for wage revision was Rs 24 crore in Q3FY2024.

The bank has witnessed marginal decline in the net interest margin to 3.19% in Q3FY2024 on account of faster repricing of liabilities than assets.

The exposure to NBFCs stands at one-third of the corporate loan book and it relates to mostly government NBFCs.

Bank is focusing on rebalancing its balance sheet and the focus is on raising the share of high yielding assets.

In the medium term, the bank aims to grow its balance sheet in mid teens, while the focus is on reducing the share of corporate loans from existing 39 to 40% to early 30s in next 3 to 4 years.

The credit deposit ratio of the bank is a comfortable at 78%.