The bank has also exhibited healthy core operating performance, while showing strong growth in net interest income and jump in net interest margin. The bank has also exhibited strong improvement in cost-to-income ratio to 43.1% in Q4FY2018.

On business front, the bank has sharply accelerated business growth, while recorded strong 28% increase in loan book. The bank has continued to distribution network, raising the network to 800 branches and 1374 ATMs end March 2018.

Asset quality deteriorates: Bank has exhibited surge in fresh slippages of loan causing deterioration in asset quality in the quarter ended March 2018.

• Fresh slippages of advances galloped to Rs 1037 crore in Q4FY2018 from Rs 211 crore in the previous quarter. Meanwhile, the recoveries, upgradations and write-off stood at Rs 445 crore for the quarter.
• The bank has exhibited gross NPA divergence of Rs 1115.1 crore, net NPA divergence of Rs 667.86 crore and provision divergence of Rs 472.50 crore for FY2017 against the net profit reported at Rs 452.26 crore for the year.
• Outstanding standard restructured advances of the bank dipped to Rs 283.40 crore (0.60% of advances) at end March 2018 compared to Rs 897 crore (2.02% of advances) at end December 2017.
• Stressed assets (NNPA and restructured advances) declined to 3.56% of advances at end March 2018 from 4.86% at end December 2017 and 5.44% at end March 2017.
• RWA increased 16% to Rs 44981.00 crore at end of March 2018 from a year earlier.

Business growth accelerates: Business of the bank increased at accelerated pace of 17% yoy to Rs 110123 crore at end March 2018. Deposits increased 11% to Rs 62871 crore, while advances also moved up 28% to Rs 47252 crore at end March 2018. Credit-deposit ratio eased to 75.2% at end March 2018 from 76.9% at end December 2017.

Stable CASA ratio improves: CASA deposits increased 7% to Rs 17594 crore. CASA ratio was nearly flat at 28.0% at end March 2018 compared with 28.2% at end December 2017, while declined from 29.0% at end March 2017. Meanwhile, bank has sharply increased bulk deposits by 431% yoy to mere Rs 908 crore at end March 2018.

Corporate loan growth jumps: Advances increased 28% at Rs 47252 crore at end March 2018. The corporate advance surged 48% to Rs 25941 crore, while the retail advance increased 9% to Rs 21311 crore at end March 2018.

* Retail advances share declined to 45.1% at end March 2018 from 52.6% at end March 2017.

* Break-up of advances shows housing at 11.2% of the advances, agriculture - 12.2% , SME - 20.1% , medium enterprises - 3.0% , large enterprises - 11.3% , other personal loans - 5.6% and other - 36.6% at end March 2018.

* Priority sector loans (PSL) of the bank stood at 52.8% of advances at end March 2018, while consistently exceeding the regulatory PSL target of 40%, while increased from 47.0% at end December 2017 and 48.1% at end March 2017.

Investment book of the bank declined 24% to Rs 15444 crore at end March 2018. SLR investment stood at Rs 13072 crore. Share of AFS book increased to 21.5% at end March 2018 from 24.4% a quarter ago and 42.5% a year ago.

The modified duration of AFS book declined to 2.63 years, while that of overall investment book was nearly flat at 4.92 years at end March 2018.

Network expansion: Bank has opened 19 branches in the quarter ended March 2018. Bank has the network of 800 branches and 1374 ATMs at end March 2018.

Book value stood at Rs 176.70 per share at end March 2018. Adjusted Book value (excluding NNPA and 10% of restructured assets) was at Rs 126.14 per share at end March 2018.

NII growth accelerate, as NIMs jumps: For the quarter ended March 2018, the bank has posted 11% growth in interest income to Rs 1443.04 crore, while interest expenses declined 4% to Rs 901.53 crore. NII surged 54% to Rs 541.51 crore, as net interest margin (NIM) zoomed to 3.54% in Q4FY2018 from 2.41% in Q4FY2017.

Non-interest income decline with dip in treasury income: The non-interest income of the bank declined 6% to Rs 294.51 crore in Q4FY2018. The core fee income of the bank increased 93% to Rs 283 crore, while trading income dipped 93% to Rs 12 crore in Q4FY2018 over Q4FY2017.

Net Total income rose 26% to Rs 836.02 crore in quarter under review.

Expense ratio improves: Operating expenses increased 8% to Rs 360.69 crore. The employee cost increased 16% to Rs 141.82 crore in Q4FY2018, while the other operating expenses rose 3% to Rs 218.87 crore. Expense ratio improved to 43.1% in Q4FY2018 compared with 50.4% in Q4FY2017.

The operating profit jumped 44% to Rs 475.33 crore in the quarter ended March 2018.

Provisions zooms: Bank has witnessed sharp increase in provisions and contingencies to Rs 541.75 crore in Q4FY2018 as against Rs 160.40 crore in the corresponding quarter last year.

Thus, the loss before tax came in at Rs 66.42 crore in Q4FY2018.

The bank has written back tax provisions amounting to Rs 77.42 crore in Q4FY2018, helping to record net profit of Rs 11 crore in Q4FY2018.

Annual Financial Performance:

For the year ended March 2018 (FY2018), the bank has posted 28% decline in net profit to Rs 325.61 crore. The net interest income improved 25% to Rs 1857.65 crore, while non-interest income jumped 18% to Rs 954.34 crore in FY2018. The expense ratio dipped by 909 bps to 47.6% in FY2018 compared to 56.7% in FY2017. The operating expenses rose 3% to Rs 1338.82 crore, while provision and contingencies jumped 120% to Rs 1163.01 crore. The profit before tax declined 34% to Rs 310.16 crore in FY2018. After considering write-back tax provisions of Rs 15.45 crore, the net profit dipped 28% to Rs 325.61 crore in FY2018.