Net profit rose to Rs 119 crore for the second quarter ended September 2021 from Rs 69 crore a year ago to Rs 278 crore mainly on account of 21% growth in NII on account of decline in interest expenses. The cost of deposits fell to 4.30%. 5.18% a year ago. net interest margin (Him) or the difference between the yield paid on deposits and the income earned on loans increased to 5.22% from 4.48% a year ago.
Other income increased by 39 per cent to Rs 70 crore from Rs 51 crore a year ago on account of higher fees and commissions. A return of Rs 9 crore in provisions on account of a fall in fresh slippages and a sharp rise in realizations helped prop up profits. The growth in NPAs fell sharply to Rs 205 crore from Rs 435 crore in the quarter ended June, while recovery increased five-fold to Rs 190 crore from Rs 36 crore in June 2021, contributing to profits for the bank by withdrawing provisions. Write permission granted. Of the total slippage, Rs 170 crore was from gold loans.
The higher recovery resulted in the bank’s gross NPAs falling to 4.11% in September 2021 from 4.88% in June, though higher than the 3.04% reported in September 2020.
CEO C V R Rajendran The bank said the bank preferred to keep a lid on the emerging stress during the quarter which helped it to keep the NPAs under control. “We expect to recover all our gold loan NPAs of Rs 287 crore and take it to the levels seen in March 2021 by the end of the current financial year. Overall we are looking at recovery of Rs 300 crore this fiscal. Let us expect between Rs 400 crore to Rs. Rajendran said.
The bank has made a provision of Rs 106 crore to deal with this. COVID-19 The pandemic which is at the same level as it was in June 2021.
Rajendran said the bank is looking at sectors like micro and small enterprises and expects the results to improve for the rest of the financial year.
“With both product and process improvements implemented/proposed, we intend to capture a better share of the retail segment and increase both retail liabilities and assets. Hence we are looking to improve our performance in both topline and bottom-line parameters. Looking forward to the coming quarters as well,” Rajendran said.