Highlights:

The business of the bank has increased 6.5% to Rs 5.53 lakh crore end December 2022, driven by 14.7% growth in advances to Rs 2.08 lakh crore.

The share of retail agriculture and MSME (RAM) loans has increased to 66.5% end December 2022.

The credit risk weight ratio for loans stood at 63.29% end december 2022.

The deposits of the bank have increased 2% Rs 3.44 lakh crore. The CASA deposit ratio of the bank has increased to 51.2%.

There is a decline in the term deposits of the bank by 1.2% as the bank do not have any requirement of deposits and the credit-deposit ratio has just increased to 60.77% end December 2012. The bank still has lendable resources of Rs 35000 crore.

The bank has recorded 20% growth in the net interest income, while net profit has jumped 64% to Rs 458 crore in Q3FY2023.

The net interest margin of the bank improved to 3.77% and including benefit of one off item it was higher at 4.07% in Q3FY203. The one off benefit in net interest margin from interest income on IT refund was Rs 242.37 crore.

The fresh slippage ratio was at 0.37% and credit cost stood at 0.36% in Q3FY2023. The credit cost including proactive front loaded provisions stood at 1.72%.

The cost to Income ratio stood at 57.02% in Q3FY2023.

The GNPA ratio declined to 8.85% end December 2022 from over 15% end December 2021.

The NNPA ratio has also declined to 2.09% from 4.39% a year ago.

The provision coverage ratio has improved to 91.72% end December 2022.

The bank has accelerated provisions for employee benefits in Q3FY2023. The provisions for wage revision were at Rs 98 crore and family pension benefit at Rs 22 crore.

The bank has 100% provisions on securities receipt book.

The bank do not have concerns about ECL transition.

The bank aims to reduce Net NPA to around 1.75% by March 2023.

The bank expect credit growth to remain steady as it not excessively aggressive on high credit growth.

Net interest margin is expected to be above 3.25% in Q4FY2023.

The credit deposit ratio is likely to increase to 64-65% by March 2023.

On the corporate side, the bank has unutilized credit limit of Rs 2500 crore and further sanctions of Rs 4500 crore to support growth.

The retail loan book growth is robust at 21% which is likely to be maintained.

The bank sees increase in the co lending loan book from Rs 4100 crore end December 2022 Rs 5000 crore by March 2023.

The bank has 65% branches in the rural area which is supporting the deposit growth and the CASA ratio.

The bank has a tech spend budget of Rs 1500 crore for 36 months.

The entire SMA book of the bank stands at 6.66%, of which SMA 2 is low at 1.65%. The bank aims to maintain the fresh slippage ratio below 0.5% going forward.