Highlights:

The FY2021 was a challenging year being the first year after amalgamation and covid-19.

The bank is placed on a better footing and is ready for good performance ahead. The bank has posted a record level of operating profit and the net profit in FY2021.

The capital adequacy ratio of the bank is very strong and asset quality is under control.

There is also a good visibility around the future performance, while the uncertainties around the amalgamation have faded away.

However, only uncertainty is around the panning out of covid-19.

The bank is focusing on retail, agriculture, MSME and PSL segment for loan growth, while there is strong focus on improving operating efficiency.

The bank expects credit cost to be below 2% for next two years.

Target for credit growth stands at 10-12% with the bank expecting retail, agriculture and MSME segment maintaining healthy loan growth and corporate loan growth is also expected to pick up.

The account relating to infrastructure NBFC Srei Infrastructure is standard, while the bank has created 20% provisions of Rs 400 crore against exposure of Rs 2000 crore.

The bank expect recoveries of Rs 5000 crore for FY2022. This includes account of DHFL.

The bank has all approvals in place but it will look at the price and market environment for capital raise through QIP.

Tax benefit is on account of accumulated losses, while the bank expects tax benefit to continue for next two three years.

The interest income reversals on account of slippages of loans stood at Rs 700 crore, while the interest on interest reversals was Rs 230 crore.

The collection efficiency has moderated from above 90% in March to 86% in April 2021 while it is expected to be lower in May 2021.

The sanctions under ECLGS 1 stood at Rs 5894 crore and disbursements at Rs 5200 crore, while sanctions under ECLGS 2 stood at Rs 926 crore and disbursements at Rs 561 crore.

The slippage rate stood at 2.8% in FY2021, while bank expects to keep slippage rate around 2.8% in FY2022.

The restructured loans in the MSME segment were Rs 5400 crore, while slippages from this restructured loan book were Rs 800 crore.