Highlights:

The bank raised Rs 15000 crore through FPU and which has been the largest FPU in country so far. The bank has been able to raise this fund within 4 months from the date when the moratorium was lifted.

And now with the raise of Rs 15000 crore, CET ratio is at 13.4%, and overall capital adequacy ratio is at 20%.

On the deposit side, the bank has posted a growth of 11.4% qoq basis. And the current account has been grown by 26%. With this growth of deposits, it shows the confidence of customers back into the bank, while the bank is also able to meet LCR requirement with LCR ratio at 114%.

And with this support from customers, the bank is able to return back 50% of the borrowing from Reserve Bank of India to the extent of Rs 25000 crore.

The operating profit has improved to Rs 1147 crore, which is 11x of the operating profit in Q4FY2020.

The net interest income also moved up 50% qoq and NIMs have also improved by more than 110 basis point.

The bank has increased the provision coverage from 73.8% to 75.1%. The bank have also made 10% COVID-related provisions on standard asset at Rs 642 crore taking overall Rs 880 crore of COVID-related provision.

The bank has shared the figure for loan book under moratorium on 5 of May when the bank declared annual results. Banks moratorium numbers are in alignment with the numbers which have come in the RBI report for the entire banking industry and especially for the private sector banks.

The standstill exposure has declined from Rs 14956 crore end March, 2020 to Rs 7800 crore end June, so the customers have repaid almost 50% of the overdue position.

About 91% of the retail customer under moratorium were never more than 30 DPD in the last 12 months. The bank has reached to 70% of normal collection.

On the credit card side, the bank has reached to 90% of normal collection, which was there in the pre-moratorium time.

Significantly, on the MSME portfolio, 85% of the customers were never more than 30 days DPD in the last 12 months. About 83% of customers on the MSME in moratorium have churning, which is more than interest observation from April to June 2020.

But as per the bank, unless the economic activities revive to the full extent, expecting a significant drop in number of customers under moratorium would be a little unrealistic.

The current NIM at 3% includes Rs 150 crore of interest recovery into nonperforming exposure. Core NIM would be around 2.8%.

As per the bank, all NPAs have been adequately provided and there is no need to make any additional provision on existing NPA book.

Average yield on the retail side of your portfolio is 10%. The yield on mortgage loan is 9.75% to 10%, the unsecured loans typically would be ranging between 11.5% to 12%, vehicle loans, like commercial vehicles, construction equipment and car loans is around 10%.

The tax rate expected to be 25% ahead.

Currently, the corporate loan book account for 56% and 44% is retail-MSME. And longer-term aspiration is to raise retail MSME to 60%.

As per the bank, because of pandemic, there is a lot of uncertainties around the quality of loan book and the recovery prospect from asset book. The major challenges for medium term are economic activities not revising sufficiently, adequate support from regulator and the Government and prospects of recovery in the stressed asset portfolio get further extended.

The asset quality on the retail and SME side is one of the best in the industry, as bank teams are extremely good in terms of selection of customers and also in terms of collection. So the bank is going to use this capability. And increasing the loan book on the retail and MSME side by around 20% would not be difficult because overall book is small and the bank can still grow even being very selective in terms of customer profile

The exposure to commercial and residential real estate is 7.6% of loan book.