Business Overview:
Rebuilding business volumes, Improving asset quality and reducing credit cost, Attracting good talent and stabilizing the team are the three objectives fulfilled in FY22.
Ramesh Murthy as the CFO and Prabhu as the Internal Audit Head are the recent addition to the senior management.
Launched an initiative to vaccinate customers against covid and successfully completed 80,000 vaccinations.
Planning to achieve minimum public shareholding through QIP and return to regulators for the approval of the reverse merger.
Income was suppressed due to high NPA levels which lead to Interest reversal and Non-Recognition of income.
Cost to Income ratio has increased due to suppression of income and increased collection cost.
Incremental Over dues came back to pre-covid level.
Launched Non-Callable FD’s in the form of platina FD’s.
Seen net reduction in absolute PAR, NPA and good reduction as a percentage of gross advances in April 2022.
Financial Highlights:
Disbursements are at 4,870 crores which is highest ever in Q4 FY22.
Disbursements of MSE is 19% of total disbursements in FY22.
Micro Banking disbursements comprised of 2.4% fresh loans in Q4 FY22.
Gross Advances grew by 20% YoY and 10% Q-o-Q to 18,162 crores as of March 31, 2022.
Deposits grew by 39% YoY and 18% Q-o-Q to 18,292 crores as of March 31, 2022.
Retail Term Deposits grew by 30% YoY and 15% Q-o-Q to 5,184 crores in Q4 FY22.
CASA deposits grew by 85% YoY and 21% Q-o-Q in Q4 FY22.
CASA ratio is at 27% in Q4 FY22.
Retail branch banking grew by 59% in FY22.
Retail branch banking savings account average balances moved up to 30,000 crores in March 2022 against 15,000 crores in March 2021.
Stress pool has reduced to 10% currently from 32% in June 2021.
Trying to bring down LGD from 60% in FY22 to 50% in FY23 by collection efforts.
Provisions on Restructured book is at 394 crores.
SMA book is at 2.5% in Q4 FY22 compared to 7% in Q3 FY22.
Total NPA provisions stood at 934 crores in FY22 excluding the floating provisions of 250 crores.
Ticket size increased to almost 60,000 in FY22 compared to 38,000 in FY21.
In MSE portfolio informal business based on assessed income is 57% of the overall book.
Profitability Numbers:
NII is up by 48% YoY to 544 crores and 20% Q-o-Q in Q4 FY22.
PCR is at 92% in Q4 FY22.
NIM increased to 10.1% in Q4 FY22 compared to 8.1% in Q2 FY22 and 9.1% in Q3 FY22.
PPOP is at 217 crores in Q4 FY22 compared to 541 crores in Q3 FY22.
ROA is at 2.3% and ROE is at 18.7% in Q4 FY22.
PAT is at 127 crores in Q4 FY22.
Credit Cost is at 44 crores in Q4 FY22.
Restricted the credit cost at 118 crores by utilizing the floating provisions.
Cost of deposits is at 6% in Q4 FY22 compared to 6.1% in Q3 FY22.
Cost of funds declined to 6.1% in Q4 FY22 from 6.2% in Q3 FY22.
Collection Efficiency stood at 100% in March 2022.
PAR book has reduced to 10% in March 2022 compared to 30.8% in June 2021.
GNPA is at 7.1% and NNPA is at 0.6% in Q4 FY22.
Restructured Book:
Restructured loan book has reduced from 32% in June 2021 to 12% currently.
Restructured book efficiency is at 89% in March 2022.
Total Restructured book is at 845 crores from which GNPA is 370 crores, PAR is 458 crores and Standard Asset Provisioning is 146 crores.
In Restructured book provisioning 328 crores is for NPA provisioning.
Restructured book would be completely run off by March 2023 except for the secured loans.
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