Major Highlights of Q4FY20 and FY20

Growth in deposits continue to drive loan growth

  • Deposit book remains resilient and grew by 17% YOY and 8% QOQ, Loan book grew by 15%
  • On QAB basis, CASA + RTD constituting 80%, grew 22% YOY, RTD grew 33%
  • On QAB basis, SA grew by 13% YOY & 3% QOQ, CA grew by 11% YOY vs period end growth of 1%

Strong operating performance

  • NII for Q4 & FY20 was up 19% and 16% YOY respectively; NIM was 3.55% for Q4 and 3.51% for FY20
  • Operating profit for Q4FY20 was `5,851 crores, grew 17% YOY
  • Operating profit for FY20 stood at `23,438 crores, grew 23% YOY, with an Operating Profit Margin of 2.83%

Well capitalised with adequate liquidity buffers

  • Overall capital adequacy stood at 17.53% with healthy CET 1 ratio of 13.34% as at the end of FY20
  • Focus remains on conserving capital in short term, RWA to total assets declined from 79% to 67% over last 4 yrs
  • Liquidity Coverage Ratio currently at a level of 120% with excess SLR of `48,463 crores

Retail book is well diversified, largely secured with high share of ETB & salaried customers

  • Retail loans grew 24%; Retail fee comprises 64% of the overall fees
  • 80% of Retail book is secured, home loans constitute 35% with average LTV's of 60%
  • 20% of Retail book is unsecured, over 80% is to ETB customers of which 80% are salaried

Strong Relationship led Wholesale Franchise

  • Our top corporate relationships on an average, now avail 9 products across the One Axis platform
  • Corporate Loans grew by 11% YOY, driven by AAA & AA rated clients, 38% of loans are short term in nature
  • 83% of the book and 95% of incremental sanctions are to A- and above

Asset Quality

  • NPA + BB loan book declined from 3.4% of customer assets to 2.7% YOY; Coverage ratio improved from 60% to 69% QOQ
  • GNPA impact of 11 bps as on 31 March 2020 on account of asset classification benefit as per RBI guidelines of April 17, 2020
  • Additional provisions made as per RBI circular of June 7, 2019 without reckoning dispensation of extended resolution period
  • Covid-19 impact on credit quality unknown; have tested robustness of our underwriting models and are comfortable
  • Cumulative additional provisions including standard asset provisions translate to standard asset coverage of 1.3%

Key Metrics for FY20

Snapshot (As on March 31st, 2020) (in ` Crores)

Profit & Loss Absolute (in ` Crs) YOY Growth
  Q4FY20 FY20 Q4FY20 FY20
Net Interest Income 6,808 25,206 19% 16%
Fee Income 2,931 11,019 (3%) 9%
Operating Expenses 4,942 17,305 17% 9%
Operating Profit 5,851 23,438 17% 23%
Profit Before Tax (1,879) 4,904 - (30%)
Net Profit / (Loss) (1,388) 1,627 - (65%)
Balance Sheet Absolute (in ` Crs) YOY Growth
  FY20    
Total Assets 915,165   14%
Net Advances 571,424   15%
Total Deposits 640,105   17%
Shareholders' Funds 84,948   27%
Key Ratios Absolute (in ` Crs) YOY Growth
  FY20 FY19
Diluted EPS* (in `) (Q4/12M) (19.79) / 5.97 23.61 /18.09
Book Value per share (in `) 301 259
ROA (in %) (Q4*/12M) (0.62) / 0.2 0.78 / 0.63
ROE (in %) (Q4*/12M) (7.08) / 2.34 10.30 / 8.09
Gross NPA Ratio 4.86% 5.26%
Net NPA Ratio 1.56% 2.06%
Basel III Tier I CAR 14.49% 12.54%
Basel III Total CAR 17.53% 15.84%

* Annualised

Deposits# 19% YOY

CASA+RTD#

22%YOY (QAB)
17%YOY (End Balance)

#QAB - Quarterly Average Balance

Domestic Advances 15% YOY

Retail Advances**

24% YOY

** As proportion of Total Advances

Operating Profit (` in crores)

FY20
23,438
FY19
19,005
23% YOY

Profit After Tax (` in crores)

FY20
1,627*
FY19
4,677
65% YOY

* PAT adjusted for one-time DTA impact, lower tax rate and prudent Covid risk provisioning would be `5,182 crores

Domestic Branch Network*

March-20
4,528
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 operating performance:

  • Operating profit for Q4FY20 grew by 17% YOY to `5,851 crores
  • Net Interest Income in Q4FY20 grew by 19% YOY to `6,808 crores; NIM was 3.55%
  • Operating profit for FY20 grew by 23% YOY to `23,438 crores
  • Net Interest Income in FY20 grew by 16% YOY to `25,206 crores; NIM for FY20 was 3.51%
  • Net profit for FY20 was `1,627 crores. Adjusted for the one-offs, net profit for FY20 would have been `5,182 crores up 11% YoY

Growth in Deposits continues to drive Loan growth:

  • Total deposits grew 19% YOY on Quarterly Average Basis (QAB)
  • Savings Account deposits grew 13% YOY, Current Account deposits grew by 11% YOY and Retail Term
  • Deposits (RTD) were up 33% YOY on QAB basis. CASA ratio was 39% on QAB basis
  • The Bank added 478 branches to its domestic network in FY20
  • Loan book grew by 15% YOY with Retail loans up 24% YOY and Corporate loans up 11% YOY

Well capitalized with adequate liquidity buffers:

  • Overall capital adequacy at 17.53% with Common Equity Tier 1 ratio of 13.34% at the end of FY20
  • Liquidity Coverage Ratio, currently at 120%, with excess SLR of `48,463 crores

Business segments' performance:

  • Retail loans accounted for 53% of total loans; Retail fee constituted 64% of total fees
  • 80% of Retail book is secured, home loans constitute 35%
  • Over 80% of the unsecured loans are to ETB customers and over 80% are to salaried
  • In Corporate segment, 83% of the book and 95% of incremental sanctions are to A- and above;

Asset quality metrics improving, additional provisions held of `5,983 crores:

  • NNPA declined to 1.56%, from 2.09% on QOQ basis
  • GNPA impact of 11 bps on account of April 17 2020, dispensation not availed for June 7, 2019
  • During the quarter, the Bank has made provisions of `7,730 crores including `3,000 crores related to COVID; taking the overall additional provisions held by the Bank to `5,983 crores. The overall additional provisions held by the Bank towards various contingencies together with the standard asset provisions, translate to a standard asset coverage of 1.3% at March 31, 2020.
  • Overall PCR* improved to 69% as at end of Q4FY20, compared to 60% for Q3FY20 and 62% for Q4FY19

Among the top players in the digital space:

  • Mobile banking spends grew 44% YOY
  • Market share in UPI transactions stood at 15% for Q4FY20; quarterly transactions up 135% YOY
  • Share of digital channels in sourcing fixed deposits and personal loan disbursements stood at 66% and 48%, respectively in Q4FY20

* PCR excluding technical write-offs

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