Due to the Covid second wave spread and the resultant restrictions, there was a slowdown in the economic activity and the portfolio stress aggravated. The lockdowns and intermittent holidays impacted both fresh pledges and releases. While we were able to manage the NPA in loans other than gold, we had some challenges in the gold loan portfolio. As on 30.06.2021, restructured advances as a percentage of total advances is only 0.48 %.
Particulars |
Q1 FY 22 |
Q1 FY 21 |
Q4 FY 21 |
Gross NPA |
686.39 |
401.03 |
393.00 |
Gross NPA % |
4.88% |
3.51% |
2.68% |
Net NPA |
443.75 |
195.24 |
169.00 |
Net NPA % |
3.21% |
1.74% |
1.17% |
Provisioning Coverage Ratio |
70.20% |
81.73% |
84.89% |
Increase in GNPA level when compared to Q4 of FY 21 is mainly because of increase in Gold NPAs and we are optimistic of recovering the same without much losses/haircuts.
Performance Highlights:
(Rs Crore) |
Q 1 FY 22 |
Q1 FY 21 |
YoY |
Q4 FY 21 |
QoQ |
Interest Income |
495.25 |
422.60 |
17% |
497.12 |
0% |
Interest Expense |
227.50 |
237.34 |
-4% |
221.42 |
3% |
Net Interest Income |
267.75 |
185.26 |
45% |
275.70 |
-3% |
Treasury Profits |
19.55 |
43.49 |
-55% |
1.51 |
1195% |
Other Income |
56.73 |
30.79 |
84% |
110.81 |
-49% |
Total Non-Interest Income |
76.28 |
74.28 |
3% |
112.32 |
-32% |
Net Operating Income |
344.04 |
259.53 |
33% |
388.02 |
-11% |
Staff Cost |
97.21 |
86.03 |
13% |
178.64 |
-46% |
Other Opex |
67.05 |
44.41 |
51% |
80.43 |
-17% |
Total Opex |
164.26 |
130.44 |
26% |
259.07 |
-37% |
Operating Profit |
179.78 |
129.09 |
39% |
128.96 |
39% |
Standard Asset Provision |
-4.05 |
43.08 |
-109% |
-37.08 |
-89% |
Other Provisions |
102.31 |
14.45 |
608% |
108.02 |
-5% |
Provisions other than Tax |
98.26 |
57.53 |
71% |
70.94 |
39% |
PBT |
81.52 |
71.57 |
14% |
58.02 |
41% |
Tax |
20.52 |
18.01 |
14% |
15.12 |
36% |
PAT |
61.00 |
53.56 |
14% |
42.89 |
42% |
Deposits |
18,652.80 |
16,337.95 |
14% |
19,140.04 |
-3% |
Advances(Net) |
13,817.17 |
11,228.62 |
23% |
14,438.12 |
-4% |
CASA |
6,171.71 |
4,775.63 |
29% |
6,161.80 |
0% |
Gold |
5,627.14 |
3,845.00 |
46% |
6,131.00 |
-8% |
CASA% |
33.09% |
29.23% |
4% |
32.19% |
1% |
CEO Speak:
Speaking about the performance Mr. C VR Rajendran, Managing Director & CEO said, “COVID second wave coupled with the LTV management of gold loans did pose some challenges in the first quarter of FY 22. Lockdowns, alternate holidays, slowing down of the economic activity, controlled movements due to strict social distancing norms, lack of transport etc restricted the customer access to branches which in turn impacted both the fresh pledges and releases. Thankfully, the worse seems to be over now and recoveries are happening in full swing. The portfolio LTV that was at 83% has been brought down to 75%. We hardly have any MTM loss on the portfolio as on date. Despite all the adversities we had a decent start in the first quarter in terms of profitability. Bank has continued to make accelerated provisions for stressed and NPA Accounts. The key ratios like NIM, CRAR, LCR, RoA etc continues to be strong. We are confident of managing the NPAs as the challenges are mainly from the gold segment where recovery is only a matter of time. Stable gold market trends and the centralization of recovery processes at our end will mitigate this adverse situation to a large extent. The aggressive vaccination push and controlled localised lockdowns have helped in managing the second wave to a great extent and we are optimistic to catch up the business opportunities on a larger scale from this quarter.
Gold loans will continue to be a major focus for the bank. Once the demand comes back, the segments like Two-wheeler, MSME, SME etc, which were struggling to shape up in the first quarter, will have good demand and we look forward to capturing the same in the best possible manner.
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