Highlights:

The bank focused on digital initiatives, cost optimization, safety and security of employees, making operations continuous and uninterrupted, managing liquidity, deposits inflow etc.

About 95% to 98% of branches were operational, even though the customer footfall is significantly reduced.

About 47% of the portfolio was in moratorium June end and it will reduce further based on the collections efficiency in the month of July as well. The bank has improved over that in terms of collections efficiency in July. The collections efficiency has now moved to a little over 60% in the month of July from 53% in June.

In the second moratorium, the bank changed strategy from giving it on opt-in basis, as against by default provided earlier.

In the month of May, the bank saw about 16% of collections coming through the digital means, which is largely Paytm and Instamojo and also through the Airtel Payments Bank. Now this has dramatically improved to 37% in the month of July.

The bank is in very advanced API integration stages now, and the bank has a road map now where the bank will be strengthening whole partnership with multiple other initiatives also.

Almost 450 of branches are activated on Airtel payment points, and the bank has been able to really scale that up with the collective effort of entire set of ground teams.

In another 2 weeks or so, the bank will have Google Pay, PhonePe and several other -- any app which is on BBPS, the customer will have the option of making payments.

The bank has boosted up telecalling effort on the collections side. The bank has more than 300 people who are telecalling for collections, supporting the field staff. A

The bank has much in excess of 8000 people now who are predominantly working on collections.

In terms of distribution across the country, the bank saw that North had a better repayment rate followed by South, followed by East and then lastly, West.

As the infection spread to the entire country because of people going back to their native villages, rural markets were also equally affected. For the month of July, the collection stood at 65% in rural versus metro and urban at 58.5%. So the gap between metro, urban and rural is now becoming a little narrower.

After a deep study the bank has created additional covid related provision of Rs 129 crore on prudential basis taking a conservative stance.

The total provisions are to the extent of Rs 370 crore on the balance sheet, which is 2.6% of the book, which is probably amongst the best in the industry as well.

The bank has a very good quality portfolio.

In terms of new business, disbursals were Rs 474 crore in Q1FY2021. May was the first month where the bank actually did any business and April was a complete washout. The disbursements stood at Rs 100 crore in May 2020 and Rs 374 crore in June 2020, while disbursements were in excess of Rs 400 crore in July 2020. And now this is nearly 35% of pre-COVID levels of disbursals.

The disbursals should remain in some range, while the bank is striking a good balance between collections as well as disbursals.

The bank continued to see a reduction in the cost of funds, which you would have noticed has come down by 21 bps. The bank reduced deposit rates by nearly 125 bps over the last quarter. So the cost of funds is likely to continue coming down.

The bank does not have any dependence on bulk deposits anymore. Most of the focus is on granular retail level CASA.

The bank has generated significant income out of treasury desk of almost Rs 60 lakh of trading income in Q1FY2021. In addition to that, there was another income of about Rs 10 crore that the bank generated by shifting of portfolio.

PCR is now up to 82%, along with the 2.6% coverage on the book.

Capital adequacy remains at 29% with Tier 1 being 28%.

The bank is not thinking of reducing workforce just because hard circumstances, so employee cost is likely to remain flat.

The bank had targeted to reduce cost-to-income ratio to 70% by March 2020 and then every year keep reducing by 5%. The bank expects to reduce cost-to-income ratio to 55% by March 2023.

Nearly 21% of portfolio is into some kind of business of manufacturing, 20% of portfolio is with agriculture, 16% is in dairy and 16% is in essential services largely groceries. The customers who are employed with hotels or eateries or run their own eateries, that is just about 6% of portfolio. The customers dependent on transportation as a line of business, drivers, is actually only 1% of portfolio. The customers who are maids or helpers or substaff, forms 3% of the portfolio, but they are again impacted amongst the highest.

About 20% of MSME portfolio is eligible for the CGT-MSE scheme. But the bank is still in the stage of finalizing the whole product program and the empanelment process and plans to roll that out sometime in end of August.