Highlights:

- The bank has exhibited healthy performance and recorded good growth on all parameters in the quarter ended December 2019. The business of the bank has expanded 11% with deposits growth of 14%. Within the loan book, the retail loan book increased 22%, agriculture 13% and MSME 19%. However, the corporate loan book has declined due to lower loan offtake, while bank has enough proposal approved amounting to Rs 12000 crore, which would help corporate loan book to return to growth in Q4FY2020.

- PSLC income has emerged as new avenue of income, while the bank expects to continue to generate PSLC income in ensuing quarters.

- Expenses ratio improved to 35.9% in Q3FY2020.

- The net interest margins of the bank was impacted to interest income reversal of Rs 35 crore on classification DHFL account as NPA, while bank expects to improve margins above 3% by March 2020.

- Fresh slippages of loans stood at Rs 2130 crore in Q3FY2020, of which Rs 1325 crore came from DHFL. The bank has well contained slippages in the retail, agriculture and MSME segment.

- The bank has substantially improved PCR by 10 percentages points to 78.4% end December 2019 over December 2018.

- Bank expects improvement in GNPA and NNPA ratios by March 2020, while fresh slippages would be contained and focus would be on recoveries.

- Bank is expecting some of the corporate accounts to be resolved in the near term such as Bhushan Power & Steel (Rs 830 crore), Costal Energen (Rs 372 crore with 65% provisions), Jindal India (Rs 157 crore), Alok Industries (Rs 333 crore with 100% provisions), Athena Demwe (Rs 200 crore with 100% provisions), RKM Powergen (Rs 600 crore with 25% provisions), Anrak Aluminium (Rs 59 crore) etc.

- The SMA 1 category loan book of the bank stands at Rs 8000 crore, while SMA-2 stands at Rs 3849 crore end December 2019.

- The exposure to Reliance Home Finance stands at Rs 120 crore, which is expected to slip to NPA.

- The bank has switched to new corporate tax rate, while expects its tax rate to be 25.1% ahead.

- With regards to exposure to accounts under 7 June circular, the bank expects provisions of Rs 100 crore.

- The merger with Allahabad Bank would be completed by March 2020, while bank do not expects any surprises in corporate book of Allahabad Bank which has strong PCR.