Highlights

The bank has witnessed one of the best quarter in Q3FY2022. The bank has achieved few milestones in terms of crossing net total income of Rs 2000 crore, net profit of Rs 500 crore and RoA of 1% in Q3FY2022. Meanwhile, the bank is doing lot of work focusing on journey ahead.

The credit cost is under control, while the bank has added more provision for restructured loan book with an aim to come out well protected from any impact of third covid wave.

The bank has recorded strong 15% growth in Casa deposits raising Casa deposits ratio to 37% at end December 2021. The bank has also continued to build granular liability franchise.

Bank went live with two Account Aggregators - Finvu and Onemoney. The bank has substantially improved new account opening.

The bank continues to gain market share in NRI remittance at 19.23% in Q2FY2022.

The personal loan growth is slow, as bank is cautious on unsecured credit but credit growth would pick up ahead.

Bank is on target to improve RoA to 1.2-1.25% in next 4-6 quarters.

NIM improved to 3.27% in Q3FY2022, while the bank sees scope for further improvement in NIIM by 5-7 bps ahead.

The bank has exhibited sharp decline in credit cost. Bank sees some scope for further improvement in credit cost. The credit cost is expected to be in the range of 60-70 bps ahead.

The collection efficiency of the bank has improved above 95%.

The share of retail loan book stands at 55% and the bank is comfortable on current loan book mix.

The high yielding loan segments in the retail loan book such as credit cards, gold, commercial vehicle etc are showing traction and would contribute margin improvement.

The bank is targeting loan growth of mid to high teens for FY2023. As per the bank, the retail loan growth in the secured loan segment would be faster than the unsecured (personal, cards etc) segment.

In the commercial vehicle segment, the bank has strengthened team and expects a meaningful growth in FY2023.

Cost to income ratio of the bank has increased 54.8% mainly driven by employee and business development cost. However, the bank expects cost to income ratio to normalize ahead and sees 200 bps reduction in FY2023.

The cost of deposit has declined to lowest at 4.2%, while bank do not see much scope to reduce it further.

As per the bank the annual spends on tech and partnerships stands at Rs 70-80 crore, which is expected to mix of benefit in well positioning the bank.

The SMA loan book of the bank stands at 4.15% end December 2021.

The external benchmark linked loan book stands at 40% of total advances.

The bank expects gold loan growth at 10-15% for FY2022 and in mid twenties for FY2023.

The residual restructuring Rs 400 crore was conducted in Q3FY2022. The bank expects no further restructuring ahead.

About 98% of restructured loan book is secured.

The bank would be maintaining PCR at 65%.