Expense ratio dipped sharply to 64.6% in Q4FY2020 compared to 78.1% in Q4FY2019. However, the provision and contingencies moved up 683% to Rs 96.88 crore Q4FY2020 due to covid related provisions of Rs 70 crore.

The profit before tax increased 30% to Rs 93.72 crore in Q4FY2020. The effective tax rate increased to 21.9% in Q4FY2020 compared to 11.7% in Q4FY2019.

The bank has improved margins on sequential basis to 11.2% in Q4FY2020 from 10.9% in Q3FY2020. The gross advances growth eased to 28% to Rs 14153 crore end March 2020. Total deposit jumped 46% to Rs 10780 crore, with 72% surge in the retail deposits and 86% spurt in CASA deposits.

The bank has continued to focus on customer acquisition and raised customer base to 52.5 lakh end March 2020 from 51.0 lakhs customers end December 2019 and 46.1 lakhs end March 2019.

Asset quality stable: The bank has maintained stable asset quality in Q4FY2020.

GNPA ratio rose 2 bps qoq and 5 bps yoy to 0.97% end March 2020.

NNPA ratio declined 18 bps qoq and 6 bps yoy to 0.20% end March 2020.

Provision coverage ratio stood at 80.0% end March 2020 compared with 60.0% end September 2019 72.0% end March 2019.

The bank has made provisions of Rs 70 crore for covid 19 out of which Rs 48.97 crore is in respect of accounts in defaults but standard against the potential impact of covid 19. The provision held by the bank is excess of RBI prescribed norms.

The bank is well-capitalized with CAR at 28.8%

Business highlights:

Gross Advances at Rs 14153 crore end March 2020; growth of 28% over March 2019.

Non-Micro Banking portfolio now contributes 23% to the portfolio against 15% as of March 2019

Disbursement for Q4FY20 stood at Rs 3254 crore vs Rs 3728 at Q4FY19. Disbursement for FY20 at Rs 13,221 crore up 19% yoy.

Secured portfolio constitutes 22% to the portfolio compared to 14% as of March 2019

Deposit base at Rs 10780 crore as of March 2020 covering 76% of total advances against 67% as of March 2019.

Retail deposits at 44% to total deposits vs. 37% in March 2019; CASA ratio at 14% vs. 11% in March 2019

Net Profit of Rs 73 crore in Q4FY20 against Rs 64 crore in Q4FY19

Net Interest Income of Rs 466 crore in Q4FY20 an increase of 46% over Q4FY19

Net Interest Margin was at 11.2% in Q4FY20, against 10.8% in Q4FY19. Net Interest Margin at 10.8% in FY20, against 10.9% in FY19

Cost to Income ratio at 65% in Q4FY20 vs. 78% in Q4FY19

ROA/ ROE for Q4FY20 at 1.6%/ 9.3% in Q4FY20 vs. 2.0%/ 14.2% in Q4FY19

Liquidity coverage ratio at 261% in Q4FY20, against 187% in March 2019

Cost to Income ratio decreased to 67% in FY20 from 77% in FY19

ROA/ ROE for FY20 at 2.2%/ 13.9% vs. 1.7%/ 11.5% for FY19

Financial Performance FY2020:

For the year ended March 2020 (FY2020), the bank posted 76% decline in the net profit to Rs 349.92 crore. The net interest income increased 48% to Rs 1633.59 crore, while the non-interest income improved 56% to Rs 322.21 crore in FY2020. Expense ratio dipped sharply to 67.4% in FY2020 compared to 76.5% in FY2019. The provision and contingencies moved up 321% to Rs 170.99 crore FY2020. The profit before tax jumped 74% to Rs 466.24 crore in FY2020. The effective tax rate was marginally higher at 24.9% in FY2020 compared to 25.8% in FY2019. Net profit surged 76% to Rs 349.92 crore in FY2020.