Highlights:

About 600 employees were impacted by covid-19 and six have lost their lives.

As per the bank, nearly 80% of the country is under some kind of lockdown. The difference between the first and second covid wave is that there is a lot of experience, preparedness and hope in terms of vaccination during the second wave.

The disbursement in the quarter ended December increased 8% and the momentum continued in the Q4FY2021 and the bank posted one of the best all round performance in Q4FY2021.

The collection efficiency improved to 94% in Q4FY2021.

The deposits base surged 22% end March 2021. Retail deposits stood at 48% and Casa ratio at 21%. Casa deposits have surged 85%.

The disbursements increased 31% in the quarter ended March 2021. Non microfinance loan Book has increased to 28% from 23% last year. The share of secured loans has increased to 27% from 22%.

The bank has added 8 lakh new customers in the FY2021.

The share of non paying customers has continued to decline, while the paying customers stands at 96%.

The treasury segment of the bank is performing well and contributed a healthy amount of trading gains in FY2021.

The loan book of the bank has increased 11% on sequential quarter basis and 7% over a year ago to Rs 15140 crore end March 2021.

MSE and Housing Finance have grown as a large business for the bank.

There is pick up in disbursements to the new customers, while the share of new customers has increased to 22% in Q4FY2021.

The affordable Housing Finance loan book crossed Rs 2000 crore level. Affordable Housing Finance book has expanded 34% and MSE 31% end March 2021 over March 2020.

The financial institutions group book stood at Rs 648 crore, which is lending to NBFCs and microfinance companies with the cap of 10%

The bank has focused on improving productivity and efficiency. There is reduction in the head count by 1200 to 1400 employees in FY2021.

Among the worst hit states, Maharashtra continues to be impacted while it is recovering now. The collection efficiency stands at 87% in March which has dropped in April 2021. Assam, Kerala, Punjab, Chhattisgarh are other impacted states. In Assam at bank level the portfolio is 2% and in the microfinance it is less than 3%.

The bank continued to carry fairly good amount of the covid provisions of Rs 172 crore on its books.

The provision coverage ratio stands at 60%.

The bank has restructured Rs 850 crore of microfinance loans.

The gross NPA in the MSE book is higher, as the bank had earlier expected restructuring of Rs 100 crore but now the restructuring is just Rs 30 crore after the discussion with customers.

The bank has plans to identify customers in the MSE and housing segment for restructuring, under latest restructuring guidelines from the RBI.

The bank proposes to reduce its cost of deposits, while it would replace its wholesale deposit with retail deposits to the extent possible.

The bank will focus on digital and technology.

The bank has reduced its cost to Income ratio to 60% in FY2021 from 67% in FY2020, which is well ahead of the target of FY2022.

The bank has interest reversals of Rs 75 crore in Q4FY2021 which is impacted the cost to Income ratio rising to 69%.

The disbursements in April to 2021 were Rs 690 crore.

The bank expects loan growth of 20 to 25% for FY2022.

Casa ratio would continue to improve to 25-27 percent in FY2022.

Banks sees room to reduce its cost to Income ratio by another 300 bps in FY2022.

The bank proposes to add 55 new branches in FY2022.

The year ahead is expected to be the year of reasonable amount of stabilization and growth.

The bank will focus on improving profitability with conservative provisioning.

There is a forecast for better monsoon which is expected to support the rural economy but the second wave impacting the rural economy more than the urban economy is a concern.

The bank does not give any top up loans which caused Q3FY2021 to be muted.

The portfolio at risk is 14% end March 2021.

The write off stood at Rs 75 crore for FY2021.

The bank has offered increments to employees in FY2021.

The disbursement to the new customer picked up from 5% in Q1FY21 to 8-10% in Q2FY2021, 14 to 15% in Q3FY2021 and 22% in Q4FY2021. The focus will be back on existing customers in Q1FY2022.

The bank is in discussion with the Reserve Bank of India on reverse merger along with the small banks association and the RBI would issue discussion paper anytime soon.