Highlights:

The bank has recorded an all time high quarterly net profit of Rs 411 crore in the quarter ended September 2022. The net profit in the first half of FY2023 at Rs 525 crore has already surpassed the net profit of FY2022 at Rs 508 crore.

The yield on advances as further improved to 9.45% in Q2FY2023. Then net interest margin has improved to 3.78% in Q2 and 3.56% in H1 from 3.15% in H1 last year.

Return on asset has improved to 1.07% in Q2 and 1.1% in H1 from 0.53% in H1 last year

The return on equity has also jumped to 22.31% in Q2 and 14.36% in H1 up from 6.59% last in H1 last year.

The bank has reduced gross NPA and net NPA in absolute as well as percentage terms. The gross NPA ratio has declined to 3.36% and the net NPA ratio has moderated to 1.72% end September 2022.

The bank has improved slippage ratio to 0.53% in Q2 from 0.89% in Q2 last year. The credit cost was negative at -0.01% down from positive 0.24% Q2 last year.

The bank has further improved provision cover is ratio to 79.97% end September 2022 from 71.67% end September 2021

The bank as also improved capital adequacy ratio to 15.28% end September 2022 from 14.48% last year, which is excluding the profit for H1 for both the period.

The share of digital transaction has increased to 93.17%. On loan approval front, 79% of car loans, 76% of home loans and 75% of MSME loans are sanctioned through digital channel. About 59% of the saving bank accounts are opened digitally.

The bank would continue to focus on consistency while reducing negative surprises.

The bank is targeting credit growth of above 15% for FY 2023

CASA deposit ratio has improved to 32.82% from 30.88% last year, as CASA deposits have increased 12.78% against overall deposit growth of 6%.

The bank is targeting to improve CASA deposit ratio to 35% by end March 2023. The bank is focusing on CASA and it has setup CASA cells across all its 14 regional offices.

The bank has maintained healthy cost of deposits at 4.46% down from 4.64% Q2 last year. The cost of deposit has declined to 4.47% in H1 from 4.73% in H1 last year. It expect cost deposits to increase ahead

The share of external benchmark linked lending book stands at 56%. The bank has improved the interest spread to 4.99% in H1 from 4.27% in H1 last year. The bank expects to maintain healthy interest spreads of above 4% going forward.

The net interest margin of the bank was higher at 3.78% and expect margins to stabilize at 3.4 - 3.5%, which is above the target of the bank of above 3% of margins.

The net interest income of the bank has increased 26%.

The bank had targeted to improve RoA above 1% and RoE to 14%, while the bank has achieved these targets ahead of deadline and now aims to sustain ROA and ROE at current levels going forward.

The bank has come out of all negative surprises and expects sustainable performance going forward.

The bank is sitting on sanctions of Rs 6000 crore of loans which are yet to be disbursed.

The bank is aiming to achieve cost income ratio of 45-47% for FY23.

The interest income recovery was Rs 40 crore against the overall recoveries in written of account of Rs 348 crore in Q2FY2023 of which the principal recovery was Rs 308 crore.

On a conservative basis, the bank is expecting credit cost of below 1% for FY2023.

Bank aims to reduce gross NPA ratio below 3% and net NPA ratio to 1.5%.

Employee cost is driven by higher superannuation cost in Q2FY2023.