Highlights:

Banking being essential service about 98% of the branches of the bank were functional during lockdown. The bank connected with the customers to understand their business requirements.

In the last 10 days, the bank achieved pre-covid transaction level of around 1.2 million.

As on 25 June about 41% of the loan book of the bank is under moratorium. However, initially the loan book under Moratorium was as high as 51 to 52%, while the bank has started advising the customers about the impact of moratorium and accordingly the loan book under moratorium is reducing.

The bank had to create the provision of Rs 19.5 crore at the rate of 10% (5% in Q4FY20 and 5% Q1FY21), while the bank has created full provision of Rs 19.5 crore in the quarter ended March 2020.

The bank has a very strong liquidity coverage ratio of above 400% which is sufficient to meet any uncertain situation. The bank has additional investment of Rs 6000 crore in government securities of short durations.

The bank has been taking various business transformation initiatives during the last three years. Whatever structural changes the management has taken over last three years the bank expect this to take it to the next generation level with complete infrastructure and technology.

The bank has slowed down disbursements from the second week of March with the uncertain environment, which has impacted the disbursement growth for the bank in the quarter ended March 2020

The bank has created precious metal division and targeting the business of Rs 1000 crore in the initial year FY2021.

The bank is providing corporate credit cards, while its planning the launch of personal credit card in the current year while it will look at the market situation.

The bank is showing consistent decline in cost of deposits over last three years, while the cost of deposits have declined to 5.55% in the quarter ended March 2020.

The bank has reduced term deposit rate by 30 bps and saving deposit rate by 50 bps in the current year.

The bank is uncertain about achieving the NIM target of 4%, but it will put all efforts to achieve the target.

The bank has reduced net NPA by 100 bps driven by higher provisioning and recoveries.

The bank has also exhibited surge in provision coverage ratio to 68.9%.

The bank would be using digital channel to build CASA deposits base and aim to achieve CASA deposit ratio of 32-33% by year and further improve CASA deposits to aspirational level of 35% in next 3 years.

The bank is focusing on growing non-interest income, while it has tied up with Bajaj Life Insurance and Star Health Insurance for insurance distribution.

The fresh slippage ratio was higher at 3.3% for FY2020 above the aspirational target of the bank of 1.75%. The bank expects to contain the fresh slippage ratio at 1.75-2.50% in the situation of covid-19 in FY2021.

As per the bank, there would not be any serious issue on the asset quality front.

The SMA – 0, 1 and 2 outstanding loan book as on 29 February 2020 stood at 1.23%

The bank has created provision of Rs 45 crore relating to covid-19 of which Rs 19.5 crore is relating to 10% provision requirement and the bank has also created additional Rs 27.5 crore of prudential provisions.

The bank has tied up with the leading NBFC from Chennai for co lending business opportunity.

The bank has come out with various measures to reduce expenses.

As per the bank, it can disburse up to Rs 2300 crore under government guarantee loan to MSME sector if its eligible customers apply for the scheme. The bank has completed disbursements of Rs 800 crore so far due to lack of demand.

The technical write-off were Rs 400 crore and asset sale to ARC at Rs 90-100 crore in FY2020.