Highlights:

The bank has recorded 42% surge in the loan book to Rs 8650 crore end March 2024 driven by jump in the disbursement for the inclusive banking, vehicle finance etc

The bank has recorded 36% growth in the disbursements to Rs 6919 crore in FY2024, while the disbursements have jumped 39% to Rs 2340 crore in Q4FY2024.

The vehicle loan book of the bank has crossed the microfinance loan book.

The deposits have increased by 51% to Rs 7777 crore end March 2023 from Rs 5167 crore end March 2023.

The bank has exhibited an improvement in the Casa deposit ratio to 20.1% from 17.1% year ago.

The bank is focused on building sticky and granular deposit base. The share of retail deposits has increased to 78.8% from 73.1% last year.

The borrowings accounted for 20% of the liabilities which mainly came from the financial Institutions like SIDBI and NABARD etc.

The bank has continued to invest into distribution expansion and it has a network of 690 branches end March 2024.

The bank has substantially reduced GNPA ratio to 2.8% from 3.1% last year and NNPA ratio to 0.8% from 1.5% last year.

The bank has improved net interest margin to 9.8% from 9.5% last year. The cost of funds as increased to 7.3% from 6.7% last year.

The cost to income ratio excluding the CGFMU expenses stood at 57.1% from 60% last year.

The bank is well capitalized with the capital adequacy ratio of 28.4% end March 2024.

The strategy of the bank is to turn from a micro finance lender to a micro lender to low and middle income category customer segment.

The focus is on going deeper into existing geographies and making balance sheet more granular on asset as well as liability side.

Guidance

The bank is targeting loan growth of 30-35% for FY2025 with focus on secured loan book. The bank aims to raise the share of secured loan book to more than 45% from existing 41%.

The deposit growth is targeted at 40-45%, while the bank aims to raise CASA ratio by 200-400bps in FY2025.

The bank expects CGFMU expenses at Rs 70 crore for FY2025. The bank expects to improve cost to income ratio to 57-58% in FY2025.

The bank aims to reduce GNPA ratio below 2.5% and NNPA ratio below 0.6% in FY2025.

The credit cost is expected at 1.5-1.8%.

The bank is targeting RoA of 2.2% and RoE of 15%.

The bank has decided to provide 50% upfront on GNPA of unsecured loan book going forward.

As per the bank, it would be eligible for universal bank license in years time.