Highlights:

All the branches of the bank are operating normal currently, and with the progressive unlock of the economy the business growth is on expected lines. The month on month growth momentum is continuing.

The banks cost of deposits has declined sharply to among the lowest level at 5.06% in the quarter ended September 2020 which boosted net interest margins.

The employee cost has declined by 4% in the quarter ended September 2020 and the bank has continued to make in a provisions for the bipartite settlement and the bank do not expect much pressure ahead.

The bank has substantially improved Casa deposit ratio to 34% driven by strong growth in current as well as saving account deposits.

The bank has improved the new account opening to pre covid level and its account opening in September 2020 is almost similar to September 2019.

The focus of the bank is on granularization of the time deposits.

The treasury income for the quarter ended September 2020 stood at Rs 120 crore, while the bank expect treasury income to be higher for FY2021 over FY2020.

The jewel loan portfolio of the bank has crossed Rs 11000 crore mark. The growth momentum in the jewel loan is expected to continue with the strong demands. LTV is below 75% for jewel loans and 95% of the jewel loan book is agriculture related. It's completely bullet payment. The average lending rate for agriculture jewel loan is 8.5% and the risk weight is zero. Personal gold loan interest rate is 9 to 9.5%.

The bank has disbursed Rs 1600 crore of loans under government credit guarantee scheme for the MSME and 62% of the eligible customers of the bank have availed the facility, while other 38% are comfortable and do not require the facility.

However, this figure of Rs 1600 crore of disbursement is not reflecting in the commercial banking business growth as the customers have availed of facility mostly to reduce cost of borrowing.

The demand is weak in the corporate segment and the bank do not intend to push the credit growth in this segment in the absence of demand

Last year, the bank had bought IBPCs of Rs 1325 crore which is not there in the current quarter which has impacted the loan growth. The loan growth excluding IBPCs stands at 5% against actual loan growth of 2%

The retail segment collection efficiency at 87% corporate segment at 91% which is better than expected.

The Moratorium + non Moratorium book collection is at 95% wild not known Moratorium book is also faring well in October 2020

The bank has been making provisions for covid-19 from Q4FY2020, while the bank has provided additional Rs 100 crore in the quarter ended September 2020. Overall, it has created provisions of Rs 220 crore.

On restructuring front, the bank would consider restructuring proposal only where there is a covid impact. Further the bank would also not entertain the proposal without any sufficient cash flows postponing the problem.

The bank expects restructuring of loans at 2.5% of loan book.

The request for restructuring is very low and so far the bank has not received request from any 2 digit account for restructuring.

The bank has created adequate provisions for the account not classified as NPA due to Supreme Court order, so there would not be any negative impact on the balance sheet once they are classified as NPAs ahead.

These unclassified NPAs amounts to Rs 32 crore and bank has created provisions of Rs 5 crore.