Highlights:

The bank has exhibited improved performance on a sequential basis in the quarter ended June 2021. The bank has also exhibited an improvement in the net interest margin on sequential basis to 2.16% in Q1FY2022 from 2.01% in the previous quarter.

The asset quality of the bank has improved in absolute as well as percentage terms in Q1FY2022.

The bank has also recorded decline in the credit cost to 0.95% in the quarter ended June 2021

The business growth of the bank is in line with the industry trends, while loan growth is slow. However, the retail, agriculture and MSE loan book of the bank has increased 11% end June 2021.

All three - retail agriculture and MSME segments have recorded healthy growth end June 2021 over June 2020.

The bank has improved share of Casa deposits ratio to 43.2% end June 2021.

The bank had sanctioned loan worth Rs 92000 crore in FY2020 one and another Rs 11000 crore in the first quarter ended June 2021. However, the disbursements have been slow.

The bank expect its cost of funds to remain lower as it has substantially reduced bulk deposit while its deposit rates are also lower than the repo rate.

The overall restructured loan book of the bank stood at Rs 33147 crore, while the standard restructured loan book stood at Rs18470 crore end June 2021.

Under RBI restructuring guidelines 1.0, the bank restructured loans of Rs 7714 crore, while the outstanding book has reduced to Rs 5958 crore on account of recoveries.

Under RBI restructuring guidelines 2.0, the bank has restructured loans of Rs 5299 crore end June 2021.

As per the bank, about 65% of the upgradations were contributed by single account in the quarter ended June 2021.

The bank is targeting recoveries of Rs 10500 crore for FY2022.

The bank is targeting loan growth of 6-7% for FY2022.

The bank has extended moratorium or restructuring for a period of 2 years.

The bank expects to reduce slippage ratio below 1% if there is no third covid wave in Q3FY2022.

SMA 0, 1 and 2 stands at Rs 33000 crore end June 2021 amounting to 8% of the loan book, while it has declined from Rs 51700 crore end March 2021.

SMA 0 loan book stands at Rs 8158 crore, SMA 1 at Rs 8449 crore and SMA 2 at Rs 16537 crore end June 2021.

The bank has shifted to daily recognition of NPAs from 15 April 2021.

The bank has identified 12 accounts with the exposure of Rs 3530 crore for transfer to bad bank. The process is expected to begin from Q3FY2022.