Highlights:

Bank has demonstrated sustained sequential expansion in profitability for the fifth quarter in a row. The RoA of the Bank has also expanded to 0.6% from 0.5%, reported over the last 3 quarters. The bank is also observing expansion in its operating profitability.

There is sharp reduction in balances of deposits placed in lieu of PSL shortfalls to 8.5% of assets in Q3FY25 from 10.4% of assets in Q2FY25, which is positive for margins

The fresh slippages in the Retail Segment have also remained flat on a qoq basis, which may help in reduction of gross credit costs.

The bank expects credit cost to be below 50 bps at around 30 bps.

The deposits momentum sustained with around 15% yoy growth at Rs 277224 crore. The average balances recorded a higher 15.7% yoy and 2.3% qoq growth. The bank expects sustained deposit growth, surpassing loan growth.

Average quarterly LCR remains healthy at 133.2% end December 2024.

Outperformance to Industry continued on CASA acquisition, with CA and SA deposits growing 21.1% yoy and 33.3% yoy respectively and the average balances recorded a similar growth. CASA Ratio improved to 33.1% up 340 bps yoy and 110 bps qoq

The bank has opened 3.14 lakh new retail CASA accounts in Q3FY25.

On the Advances front, SME and Mid Corporate segments maintained 25%+ yoy growth trajectory, while strategic reorientation continued in the Retail segment, aimed at profitability improvement.

Q3FY25 was another strong quarter of Fee Income performance, aided by the granular and transactional fee streams.

Asset Quality also further improved with NNPA + Net Carrying Value of SRs now at 0.6% end December 2024 as against 1.7% in Q3FY24 and 0.9% in Q2FY25.

The loan growth was at 12.6% yoy to Rs 244834 crore aided by sustained growth momentum in SME (up 26.7% yoy), Mid Corporate Advances up 26.7% yoy, and Corporate Advances up 26.8% yoy and 7.5% qoq.

The fresh disbursements of loans stood at Rs 25256 crore in Q3FY25.

The bank has sustained resolution momentum with recoveries and resolutions at Rs 1843 crore in Q3FY25, while cumulative recoveries and resolutions were at Rs 4443 crore in 9MFY25.

The fresh slippages of loans in the retail segment were flat on a qoq basis in Q3FY2025. The gross slippages were at Rs 1348 crore for Q3FY25 against Rs 1233 crore in Q3FY24 and Rs 1314 crore in Q2FY25. The retail segment contributed fresh slippages of Rs 1174 crore for Q3FY25 against Rs 1179 crore in Q2FY25.

The recoveries from the security receipts book were Rs 1189 crore in Q3FY25. The bank expects recoveries of Rs 3000 crore from security receipts book.

PSLC costs incurred during the quarter aggregated to Rs 86 crore as against Rs 71 crore in Q3FY24.

CRAR ratio stood at 15.9% with CET 1 ratio at 13.3%.

RWA to total assets was at 72.3% against 71.2% in Q3FY24 and 70.7% in Q2FY25.

NPA Provision Coverage Ratio (PCR) has improved to 71.2% from 56.6% in Q3FY24 and 70.0% in Q2FY25. Including Technical Write-offs, PCR increased to 82.4% from 71.9% in Q3FY24 and 81.5% in Q2FY25

The overdue loan book for 31-60 days book was at Rs 1864 crore against Rs 1896 crore last quarter and 61-90 days book was at Rs 2116 crore against Rs 1866 crore last quarter. The rise in 61-90 days overdue balances in the retail segment are largely driven by rural portfolios.

The standard restructured accounts amounted to Rs 1928 crore (0.8% of advances) down from Rs 3958 crore (1.8% of advances) in Q3FY24 and Rs 2125 crore (0.9% of advances) in Q2FY25.