Key Highlights

Management highlighted 3 areas of concern. One is on the incremental advance growth which continues to remain a challenge. Second is on the increasing provisions due to stress on asset quality and third on the business environment which is still not improving.

Under the given circumstances, the company has strongly performed at the operating levels with NIM at 3.03% for H1 ended Sep 17.

The growth in advances is largely due to the increased working capital requirements among the corporate. Retail advances stood at 50% of total advances. Bank continues to aim to increase the retail portion.

The yield on advances in H1 ended Sep 17 stood at 10.15% as compared to 11.06% for H1 ended Sep 16.

Gross NPA stood at Rs 1716 crore or 4.13% in Sep 17 quarter as compared to 3.64% in Sep 16.

There has been an increase in provisioning on loans which for H1 ended Sep 17 stood at Rs 449 crore as compared to Rs 250 crore for H1 ended Sep 16. The company has taken cautious approach and has done provisioning in one of the stressed assets.

Restructured assets as on Sep 17 stood at Rs 1028 crore of which Rs 118 crore is an NPA. There are no updates on the recovery front and management is trying all possible ways to recover.

Expects no more increase in provisioning going forward and whatever stressed seen in the assets have been provided for as on date.

While festive season is generally strong, expects business environment to improve in Mar 18 quarter and not before that. By beginning of FY 19, all possible stress in the asset would have been clear and there will be only recovery going forward.

NIM should hover around the current levels. Expects incremental yield to improve in FY 19.

Continues to maintain its guidance on 2020 vision which states the bank reaching an overall business of around Rs 1.8 lakh crore. For FY 18, the aim is to reach to 1.1 lakh crore.