Major Highlights of Q3FY20

Steady Operating performance

  • NII up 15% YOY
  • NIM stood at 3.57%
  • Operating profit growth (adjusted for one-off large recovery in Q3FY19) was 22% YOY

Healthy growth in Loan book

  • Domestic loan book grew 18% YOY
  • Retail book grew 25% YOY and domestic corporate loans grew 16%

Steady growth in Deposit franchise

  • Total Deposits up 21% YOY on quarterly average basis
  • CASA + Retail Term Deposits up 21% YOY on quarterly average basis

Retail business momentum remains strong

  • Retail loans now constitute 53% of the overall loan book
  • Retail free income grew 20% YOY and constituted 67% of total fee income

Asset quality stable at elevated levels

  • Gross and Net NPA ratios range-bound
  • Slippages in corporate continue to come from known stress pools (BB & Below clients)
  • Outstanding BB & Below corporate loans decline to 0.9% of customer assets

Key Metrics for Q3FY20

Snapshot (As on Dec 31st, 2019) (in ` Crores)

Profit & Loss Absolute (in ` Crs) YOY Growth
  Q3FY20 9MFY20 Q3FY20 9MFY20
Net Interest Income 6,453 18,398 15% 15%
Fee Income 2,775 8,087 6% 14%
Operating Expenses 4,497 12,363 10% 6%
Operating Profit 5,743 17,587 4% 26%
Profit Before Tax 2,272 6,783 (8)% 45%
Net Profit / (Loss) 1,757 3,015 5% (5)%
Balance Sheet Absolute (in ` Crs) YOY Growth
  Q3FY20    
Total Assets 819,039   8%
Net Advances 550,138   16%
Total Deposits 591,676   15%
Shareholders' Funds 86,198   29%
Key Ratios Absolute (in ` Crs) YOY Growth
  Q3FY20 Q3FY19
Diluted EPS* (in `) (Q3/9M) 24.71 / 14.91 25.86 / 16.33
Book Value per share (in `) 306 260
ROA* (in %) (Q3/9M) 0.86 / 0.50 0.88 / 0.57
ROE* (in %) (Q3/9M) 8.83 / 5.86 11.33 / 7.25
Gross NPA Ratio 5.00% 5.75%
Net NPA Ratio 2.09% 2.36%
Basel III Tier I CAR1 15.54% 13.07%
Basel III Total CAR1 18.72% 16.40%

* Annualised

1 including profit for 9MFY20

Deposits# 21% YOY

CASA+RTD#

21%YOY (QAB)
18%YOY (End Balance)

#QAB - Quarterly Average Balance

Domestic Advances 18% YOY

Retail Advances**

25% YOY

** As proportion of Total Advances

Operating Profit (` in crores)

Q3FY20
5,743
Q3FY19
5,525$
4% YOY
22% *YOY

$ Includes one off large recovery of `800 crores in written off accounts, witnessed in Q3FY19
* Growth after adjusting for one off large recovery of `800 crores in Q3FY19

Profit After Tax (` in crores)

Q3FY20
1,757
Q3FY19
1,681
5% YOY

Domestic Branch Network*

Dec-19   
4,415
March-19
4,050
March-18
3,703
March-17
3,304
March-16
2,904
March-15
2,589

* Includes extension counters

Results at a Glance

Steady financial performance:

  • PAT for Q3FY20 stood at `1,757 crores, up 5% YOY
  • Net Interest Income grew 15% YOY to `6,453 crores; NIM was 3.57%

Operating Profit for Q3FY20 stood at `5,743 crores. Adjusted for a previously disclosed one-off recovery of `800 crore in Q3FY19, Operating Profit grew 22% YOY, Asset quality metrics largely stable:

  • Specific loan loss provisions were down 12% YOY
  • Slippages from the loan book were `5,124 crores. In addition, slippages from the Investment book were at `1,090 crores, largely from one Housing Finance Company account
  • Gross corporate slippages for the quarter (including investment portfolio) stood at `3,891 crores, of which 81% came from clients previously rated BB and below
  • Outstanding BB & Below corporate loans declined by 18% QOQ to `5,128 crores (0.9% of customer assets)

Loan book growth remains healthy:

  • Loan book grew by almost `28,500 crores QOQ
  • Domestic loan growth stood at 18% YOY
  • Retail loan book grew 25% YOY, domestic corporate book grew 16% YOY

Deposit franchise had a steady quarter:

  • Total deposits grew 21% YOY (quarterly average basis)
  • Savings Accounts grew 12% (quarterly average basis)
  • CASA and Retail Term Deposits (RTD) together were up 21% YOY on QAB basis
  • CASA ratio stood at 40% on QAB basis
  • The Bank added 131 branches to its domestic network. Expect to add a total of 550 branches during the year

Retail business momentum remains strong:

  • Retail Advances accounted for 53% of Net Advances
  • Retail Fee Income grew 20% YOY and constituted 67% of Total Fee Income
  • Share of unsecured loans comprising of Personal loans and Credit Cards has been stable YOY at 17% of Retail book. Risk levels in most Retail products like Home loans, LAP, Personal loans and Credit Cards remain close to long term lows

Among the top players in the digital space:

  • Mobile banking spends grew 56% YOY, credit card spends grew 22% YOY
  • Market share in UPI transactions stood at 14% for Q3FY20; quarterly transactions up 110% YOY
  • Share of digital channels in personal loan disbursements stood at 41% in Q3FY20

The Bank’s Capital Adequacy Ratio (CAR) remains strong:

  • Common Equity Tier 1 ratio stood at 14.33% compared to 14.04% at the end of Q2FY20
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