Highlights:

The bank ended the moratorium with 35% loan book under moratorium end August 2020.

The focus of the bank was a return to the pre covid level of collection efficiency and most of the staff was deployed in the collection segment.

The bank has recorded collection efficiency of slightly more than 94%, while the bank expects to return to pre covid level very soon.

The disbursements of the bank in the quarter ended September 2020 were at 80% of the last year's level, while bank expects disbursement to be much better in Q3 and Q4FY2021.

The collections are under control and the focus is back to growth.

The bank has introduced gold loan and used cars loans products. As per the company, 35% of its microfinance customers had taken gold loan from other sources.

The used car loan product is to be provided through its existing commercial vehicle branches.

The bank is holding Rs 170 crore of covid related provisions which amounts to 1% of the loan book.

About 77% of the loan book of the bank is secured.

The bank has acquired 80000 new accounts in the quarter ended September 2020 on the liability side. The liability side of the bank is scaling up very well.

The bank hopes to touch its targeted RoA of 2.25% and ROE of 15% in the coming quarters.

The bank started receiving a request for restructuring which amounts to 0.5% of the loan book so far. However, the bank expect restructuring to be to be below 1.5% and the bank would consider the restructuring proposal only where the business remains impacted even after reopening of the economy.

The collection efficiency has returned to normalcy except microfinance which would take more one or two months.

The bank expect it credit cost to be higher in Q3FY2021 on account of covid related slippages. However, the overall credit cost is expected to be at 2% for FY2021 of which 1% is a normal credit cost and 1% is a credit cost related to covid-19.