On a standalone basis, the lender reported a net profit of Rs 875.95 in the quarter ended March compared to Rs 301.84 crore in the year-ago period.
“During FY21, as well as Q4, the bank witnessed healthy growth in its top line as well as in its pre-provision operating profits (PPOP). Overall, I think, we have navigated well in the year and come up stronger than before,” its Managing Director and CEO Sumant Kathpalia told reporters.
PPOP increased by 10 per cent to Rs 3,129 crore.
Net interest income (NII) rose by 9 per cent year-on-year to Rs 3,535 crore in Q4 of FY21.
Net interest margins (NIM) stood at 4.13 per cent as against 4.25 per cent in the fourth quarter of FY20. The NIM was impacted as the bank carried Rs 10,000 crore of higher liquidity during the quarter, he said.
Gross non-performing assets (GNPAs) stood at 2.67 per cent of gross advances as against 2.45 per cent earlier. Net NPAs were at 0.69 per cent, compared to 0.91 per cent.
Provision Coverage Ratio (PCR) improved to 75 per cent as on March 31, 2021, from 63 per cent as on March 31, 2020.
Provisions declined 24 per cent to Rs 1,866 crore in Q4 FY21 as against Rs 2,440 crore in the year-ago period.
“We continue to follow conservative provisioning approach and are fully provided for unsecured retail and microfinance loans. We have already seen recoveries in these segments,” Kathpalia said.
Under the Reserve Bank of India’s August 6 circular of one-time restructuring of loans affected by COVID-19, the bank restructured Rs 3,737 crore of loans.
“The good part is the restructuring has moved away from the corporate side where we are seeing steadiness and have moved towards secured assets like commercial vehicles and vehicle finance books, and that is what we are comfortable with,” he noted. Total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 17.38 per cent. Total deposits grew 27 per cent to Rs 2,55,870 crore. Advances as of March 31, 2021 were at Rs 2,12,596 crore as against Rs 2,06,783 crore. Kathpalia, however, refused to give an outlook on loan growth as the impact of the second wave of COVID-19 is yet to play out.
“We do not want to give any outlook for the quarter because we want to wait on how COVID-19 plays (out). I can tell you that the first 15 days of April witnessed very good growth and I think there is a little bit of a slowdown right now because of the second wave and we will reassess the situation in May to see how it plays out,” he said.
The bank’s scrip closed at Rs 934.95 apiece, down 0.43 per cent on BSE.
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