Highlights:

The bank has continued to exhibit healthy performance in the quarter ended March 2020. The asset under management of the bank increased 28%, while the bank has also exhibited improvement in Casa ratio to 14% from 11% year ago. The share of retail deposits has increased to 44%, while the share of top 10 depositors has declined to 17-18%.

The bank has showed healthy improvement in cost to income ratio to 65%, with room for further reduction in cost to income ratio, going forward. The headcount of the bank has remained flat at 17810 employees in Q4FY2020 and April 2020, which would help to contain employee expenses at stable level. The bank is also looking at various options to reduce its of expenses such has rentals and other contracts renegotiations.

The bank has created provisions of Rs 70 crore relating to covid-19 due to likely delaying of repayment. Provision coverage ratio of the bank has substantially improved to 80% end March 2020. As per the bank, the provisions are created on the basis of the experience of past disruptive events.

As per the bank, 40% of the portfolio is located in the red zone, 15% in green zone and balance in amber zone.

The bank has provided moratorium to all of its micro banking customers. Moratorium opted by customers in the other segments such as SME, housing and vehicle finance is at around 70%. Overall the bank has provided moratorium to 90% of its book in value terms.

The bank is strongly focusing on digital and technology based solutions for servicing its clients and customers.

The bank has maintained stable yield on advances at around 20%

Due to the outbreak of a coronavirus and nationwide lockdown, the bank suspended its field operations from 23 March 2020.

However, 98% of the branches of the bank are operational now, while ATMs are fully working.

60% of the branches of the bank have resumed field operations from 4 May 2020.

About 25% of the customers in micro banking segment informed the bank about no need of Moratorium. The bank has recorded collections of Rs 80 crore facilitated by the customers on their own.

As per the bank, more than 50% of its micro banking customers are in the essential services with own businesses and secondary source of income and expect not more than 4% of its customers to have an impact on livelihood. The bank do not deal with migrant laborers.

The bank do not face any risk of demographic discrepancies in its book.

The bank has about 144 branches in the rural area. About 91% of the customers in micro banking segment are in agri and allied activities

The bank proposes to continue to serve unbanked mass market.

The bank is witnessing steady flow of deposits while it was not much focused on deposits in the Q4FY2020 due to excess liquidity on account of IPO money. The liquidity coverage ratio for the bank was substantially higher at 261% end March 2020.

The bank has further reduced its cost of funds to 7.9% in Q4FY2020.