Highlights:

The bank has posted healthy 21% growth in the operating profit, while the net profit has moved up 8% in FY2021.

Banks focus was on asset quality and balance sheet strengthening during FY2021.

Loan book has decline by 9% in FY2021, mainly as large corporate loan book has declined by 55%. However, the retail and small corporate loan book has increased by 6.7%. The share of retail loans as increased from 45% to 53% end March 2021. The share of small corporate loans has increased from 29 % to 34%.

The bank is targeting 12-15% loan growth in FY2022. The focus is on gold loans, while bank expects the share of gold loans to rise from 5% to 10%.

The bank has improved provision coverage ratio to 14.85% end March 2021.

The provision coverage ratio is raised to 70.05% from 64.7%.

In absolute terms, GNPA has reduced by 220 crore and NNPA has also declined Rs 113 crore in FY2021. However, the GNPA and NNPA ratio has increased on account of decline in loan book.

With the focus on liability side, the bank has sharply improved CASA deposits ratio to 34.9% end March 2021.

The SMA 2 loan book has declined from 2.99% to 2.64%.

The bank has improved share of digital transactions to 90.66%.

About 72% of housing loans and 75% of car loans are sanctioned digitally. The bank aims to raise the share of retail to 80% to be digitally sanctioned.

The KBL Services started operations and it will support in improving operating efficiency of the bank.

The focus is on quality and maintaining bottom line.

As per the bank, the focus will be back on growth once the economic condition improves.

The interest reversals stood at Rs 125 crore for FY2021 and most of it came in Q4FY2021.

As per the bank, the segments such as MSME, agriculture, gold, LAP will be focused areas of growth

The GNPA in the MSME segment stands at 6.68%, agriculture 6.64%, housing 3.08%, gold loans 0.54% etc.

Karnataka state contributes 59.21% of business.

The collections are expected to be lower in May and June, but they are expected to improve from July 2021.

The PCR excluding technical write off stands at 36.55% and bank aims to improve this to 40-50%.

The credit cost stood at 2.37% in FY2021, while it is likely to decline to 2% for FY22 and decline below 2% ahead.

The bank expects slippage rate of below 15% in restructured loan book.

The bank expects restructuring under new RBI scheme at 2-4% of loan book.

The bank may take another couple of year to reach RoA of 1% and RoE of 10%.

Under corporate restructuring, the bank has identified two accounts for restructuring of Rs 400 crore and these two accounts are standard and relates to trading and construction segment.

The bank does not have any recruitment plans for FY2022 and expects stable employee expenses. It expects to maintain cost to Income ratio at 45%.

The bank expects to maintain NIM at 3%.