Highlights:

The Indian economy is showing resilience amid challenging global economic outlook. The credit growth in the banking system has continued to grow in double digits.

The long term strategy of the bank is to build sufficient resilience in the balance sheet.

The bank has recorded record high quarterly net profit of Rs 13265 crore in Q2FY2023.

The net NPA ratio has dropped below 1% end September 2022.

The cost to asset ratio of the bank continues to remain lowest in the banking industry.

The credit growth was strong at 20% driven by all the segments.

The overseas loan book has surged 30% and in dollar terms increased by 18% end September 2022.

The overseas deposit book has also surged 35% end September 2022.

The consistent improvement in the asset quality is reflected in the decline in the credit cost to 0.28% in Q2FY2023.

The restructured loan book of the bank is behaving well and stands at Rs 27336 crore end September 2022 and 9% of the book is in SMA 1 and 2 category.

Digital remains the focus area of the bank and 62% of the savings account and 45% of the retail assets were sourced digitally during Q2FY2023.

Subsidiaries of the bank continued to perform well and they are leaders in their respective areas.

The bank would maintain the current level of margins, while it has scopes to achieve better margins.

The bank expects to achieve credit growth of 14-16% with the domestic economy doing well and even the corporate are looking at borrowing from domestic banks as the international cost of borrowing and hedging rising substantially.

Strong growth in the GST collection indicates that there would be less pressure on government market borrowing and pressure on yields.

The bank has 14 accounts which are in the process of transferring to NARCL.

As per the bank, the internal accruals and funds raised through AT1 bonds would be sufficient to support the capital adequacy ratio. However, the bank would be raising the capital at an appropriate point of time.

About 74% of the loan book is linked to MCLR and external benchmark with 41% is MCLR linked and 21% is fixed rate book.

As per the bank, the interest income on income tax refund has declined to Rs 592 crore in Q2 from Rs 1900 crore in Q2 last year.