The lender’s operating profit for FY 2021 was Rs 898 crore as against Rs 753 crore for the same period to last year, an increase of 19 per cent.
The bank registered a Net Interest Income (NII) of Rs 1,287 crore as against Rs 1,265 crore for the same period last year, an increase of 2 per cent. In Q4 FY 2021, the Bank derecognised Interest of Rs 37 crore on account of NPA recognition. The Bank has created a liability of Rs 10 crore towards interest on interest payable to eligible customers as per Supreme Court Order and reduced the same from the Interest Income.
The bank’s asset quality worsened with the gross non-performing assets (NPAs) up to 4.09 per cent of the gross advances as of March 31, 2021, as against 2.46 per cent by the end of March last year.
The lender also said that its board has not recommended any dividend for fiscal ended March 2021.
The total income of the bank during the January-March quarter of 2020-21 was down to Rs 971 crore from Rs 1,012 crore in the same quarter of 2019-20. Speaking on the Q4 FY 2021 results, Murali M. Natrajan, Managing Director and CEO said, The sudden increase in Covid-19 infections on account of the second wave has once again necessitated curfews, restrictions, and lockdowns. As of now, it appears that much of Q1 FY 2022 may be consumed by dealing with the second wave and normally may return only by the end of June 2021. This current situation is having some impact on collections efficiency and new business.”
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