Highlights:

The bank has recorded 8% growth in the business volumes to Rs 6.68 crore end December 2024, driven by 13% growth in the advances to Rs 2.7 lakh crore, while the deposits rose 5.3% to Rs 3.97 lakh crore end December 2024.

The loan growth is driven by retail loan growth at 16%, agriculture 15% and MSME at 24%. Within the retail loans, housing loan growth was strong at 19%.

CASA deposits rose at a higher pace of 5.7% to Rs 1.95 lakh. The CASA deposits growth is higher than the overall deposits growth. The CASA deposits ratio of the bank was one of the best at 49.18% end December 2024.

The bank has substantially reduced GNPA ratio to 3.86% and NNPA ratio to 0.59% end December 2024.

Provision coverage ratio has improved sharply to 96.54% end December 2024.

The capital adequacy ratio is strong at 16.43% with Tier 1 at 14.21% end December 2024.

The net profit of the bank touched the highest level of Rs 959 crore in Q3FY2025.

The bank has reduced credit cost to 0.49% and the fresh slippage ratio was low at 0.39% in Q3FY2025.

The restructured loan book stands at Rs 5515 crore end December 2024.

The co-lending loan book of the bank stands at Rs 13757 crore end December 2024.

With regards to exposure to aviation accounts, the bank is expecting recovery in H1 next year.

The bank has improved RoA to 0.87% and ROE to 12.96% in Q3FY2025. The bank expects to touch ROA of 1% in Q4FY2025.

Net Interest Margin (NIM) of the bank has improved to 3.48%, in Q3FY2025. The Bank aims to maintain a net interest margin above 3%.

The IT budget of the bank is at Rs 800 crore for 5 years.

Bank expects to sign shareholder agreement for acquisition of insurance businesses in next one month.

The bank expects to reduce cost to income ratio to 52% in Q4FY2025 and target to keep cost to income ratio below 50% in FY2026.

The bank expects cash recovery and upgrades for FY2025 to be higher than FY2024.

The bank has created floating provisions of Rs 250 crore for restructured loan book in Q3FY2025 in addition to Q2FY2025 looking at ECL provision implementation.

The provision on the standard loan book stands at 1% of loan book end December 2024.

The bank needs provisions of Rs 2360 crore under ECL, while it has already created Rs 500 crore of provision and it would be able to comfortably create ECL provisions.

The gold loan book of the bank stands at Rs 13000 crore and it does not see any challenges with regard to New RBI guideline.

The bank is providing personal loans to the customers who have a salary account and give undertaking from the employer for EMI deduction.

The credit to deposit ratio moved up 465 bps, but still remained low at 68.25% end December 2004. With CD ratio low at 68% the bank is not in a need of much funds.

Segment wise agriculture contributed fresh slippages of Rs 127 crore, corporate 213 crore, MSME Rs 315 crore and retail Rs 144 crore in Q3FY2025.

The bank has reduced deferred tax assets from over Rs 7000 crore to Rs 3270 crore. The bank expects to be done with the accumulated losses by March 2026 and expects to switch to a new tax regime from 1 April 2026 which would have a positive impact of 12-13 bps on ROA with lower tax rate.

The bank has a network of 4541 branches, 4085 ATMs and 11899 BC points leading to a strong touch point strength of 20515 end December 2024.

The bank has maintained business growth guidance of 10-12% with credit growth at 14-15%. The deposits growth is expected at 8-10%.

The bank is likely to conduct a small QIP in Q4FY2025, while there are also changes of OFS.

The written off loan book stands at Rs 34501 crore end December 2024.