Major Highlights of Q2FY20

Strong Profitability Performance

  • PBT for Q2FY20 stood at `2,433 crores, up 109% YOY
  • Net loss of `112 crores, driven by a one-time tax impact of `2,138 crores due to changes in corporate tax rate. Ex of this extraordinary item, PAT would have been `2,026 crores, up 157% YoY

Operating Profitability remains strong

  • NII up 17% YOY
  • NIM increased sequentially to 3.51% from 3.40%
  • Operating profit up 45% YOY

Provision Coverage enhanced

  • PCR improved sequentially to 79% from 78%
  • The Bank also holds ~ `2,600 crores of provisions for various contingencies

Asset quality metrics largely stable

  • NPA ratios continue to improve
  • 97% of Gross slippages in corporate came from BB and below rated clients
  • Outstanding BB & Below corporate loans declined by 16% QOQ

Loan book growth remains healthy

  • Domestic loan book grew 19% YOY
  • Retail book grew 23% YOY and domestic corporate loans grew 18%
  • Retail loans now constitute 52% of the overall loan book

Deposit Franchise had a strong quarter

  • Total Deposits up 23% YOY on quarterly average basis
  • CASA + Retail Term Deposits up 21% YOY on quarterly average basis

Key Metrics for Q2FY20

Snapshot (As on Sept. 30th, 2019) (in ` Crores)

Profit & Loss Absolute (in ` Crs) YOY Growth
  Q2FY20 H1FY20 Q2FY20 H1FY20
Net Interest Income 6,102 11,945 17% 15%
Fee Income 2,649 5,312 11% 18%
Operating Expenses 4,046 7,866 6% 4%
Operating Profit 5,952 11,844 45% 40%
Profit Before Tax 2,433 4,511 109% 105%
Net Profit / (Loss) (112) 1,258 - (16%)
Balance Sheet Absolute (in ` Crs) YOY Growth
  Q2FY20    
Total Assets 809,294   11%
Net Advances 521,594   14%
Total Deposits 583,958   22%
Shareholders' Funds 83,875   29%
Key Ratios Absolute (in ` Crs) YOY Growth
  Q2FY20 Q2FY19
Diluted EPS* (in `) (Q2/H1) (1.69) / 9.59 12.17 / 11.55
Book Value per share (in `) 298 253
ROA* (in %) (Q2/H1) (0.06) / 0.31 0.43 / 0.41
ROE* (in %) (Q2/H1) (0.68) / 3.98 5.43 / 5.18
Gross NPA Ratio 5.03% 5.96%
Net NPA Ratio 1.99% 2.54%
Basel III Tier I CAR1 15.25% 13.04%
Basel III Total CAR1 18.45% 16.45%

* Annualised

1 including profit for H1

Deposits 22% YOY

CASA+RTD
21%YOY (Quarterly Average Balance) 19%YOY (End Balance)

Domestic Advances 19% YOY

Retail Advances^
23% YOY

^ As proportion of Total Advances

Operating Profit (` in crores)

Q2FY20
5,952
Q2FY19
4,094
45% YOY

Profit Before Tax (` in crores)

Q2FY20
2,433
Q2FY19
1,167
109% YOY

Domestic Branch Network*

Sept-19   
4,284
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

Strong Profitability performance:

  • PBT for Q2FY20 stood at `2,433 crores, up 109% YOY
  • Net loss of `112 crores for the quarter, driven by a one-time tax impact of `2,138 crores due to changes in corporate tax rate. Ex of this extraordinary item, PAT would have been `2,026 crores, up 157% YoY
  • Book Value Per Share improved sequentially from `272 to `298

Operating Profitability remains strong:

  • Operating profit for Q2FY20 grew 45% YOY and stood at `5,952 crores
  • Net Interest Income grew 17% YOY to `6,102 crores; NIM was 3.51%, highest in the last 9 quarters
  • Fee income grew 11% YOY, led by Retail fees, which grew 16% YOY
  • Operating expenses growth was 6% - significantly lower than growth in revenue. This resulted in a further improvement in Cost to Assets ratio to 2.06% from 2.08% in Q1FY20

Provision Coverage enhanced:

  • Provision Coverage Ratio of the Bank improved to 79% from 78%
  • The Bank also holds `2,600 crores of provisions towards various contingencies

Asset quality metrics largely stable:

  • GNPA and NNPA book both fell for the 6th straight quarter
  • GNPA and NNPA ratios were 5.03% and 1.99%, compared to 5.25% and 2.04% after Q1FY20
  • Gross corporate slippages for the quarter stood at `2,862 crores, of which 97% came from BB and below rated clients (loan and investment exposures)
  • Outstanding BB & Below corporate loans declined by 16% and stood at 1.1% of customer assets

Strong Loan book growth:

  • Loan book grew by `24,318 crores QOQ, the largest growth in the last 8 quarters
  • Domestic loan growth stood at 19% YOY. Retail loan book grew 23% YOY
  • Retail advances are now 52% of total advances of the Bank

Deposit franchise had a strong quarter:

  • Total deposits on quarterly average basis grew 23% YOY
  • CASA and Retail Term Deposits together were up 21% YOY on quarterly average basis
  • The Bank added 190 branches to its domestic network, the highest in the last 24 quarters

Among the top players in the digital space:

  • Mobile banking spends grew 60% YOY, credit card spends grew 34% YOY
  • Market share in UPI transactions stood at 12% for Q2FY20, up 162% YOY
  • Share of digital channels in personal loan disbursements stood at 43% in Q2FY20

The Bank’s Capital Adequacy Ratio (CAR) has strengthened post capital raise: Common Equity Tier 1 ratio stood at 14.04% compared to 11.68% at the end of Q1FY20.

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