• Q1 FY21
  • Quarter-1 Results 2020-21

Major Highlights of Q1FY21

Strong capital position with adequate liquidity buffers

  • Overall capital adequacy (incl. profit for Q1) stood at 17.47% with CET 1 ratio of 13.50% as at the end of Q1FY21
  • Average Liquidity Coverage Ratio (LCR) during Q1FY21 was 120%
  • Excess SLR of `26,640 Crores

Balanced performance across business segments

  • Retail loans grew 16%; Retail fee comprises 57% of the overall fees
  • 81% of Retail book is secured, home loans constitute 36% with average LTV’s of 61%
  • Corporate loans (including TLTRO investments) grew 26%

Healthy growth in deposits continue to drive loan growth

  • Deposit book grew by 19% YOY and 5% QOQ on quarterly average balance, Loan book grew by 13%
  • On QAB basis, CASA + RTD constituting 81%, grew 20% YOY, RTD grew 27%
  • On QAB basis, SA grew by 15% YOY & 5% QOQ, Retail SA grew 19% led by our focus on deepening and premiumisation

Steady operating performance

  • NII was up 20% YOY; NIM was 3.40% for Q1FY21, Cost to Assets ratio declined from 2.09% to 2.00% QOQ
  • Operating profit was `5,844 crores, down 1% on account of prudence driven changes in accounting practices
  • Adjusted for accounting policy changes* & NII reserves created, operating profit and PAT would have been `6,151 crores and `1,626 crores respectively, growing 4% and 19% YOY respectively

Asset Quality

  • NPA + BB loan book declined from 3.3% of customer assets to 2.2% YOY; Our PCR improved to 75% from 69% at March'20
  • Cumulative value of provisions (additional + Covid) aggregate to `6,898 crores and including standard asset provisions translate to 1.56% of our standard loans 
  • On an aggregated basis (specific+ standard+ additional + Covid), our coverage ratio stands at 104% of GNPA at June 30, 2020

* During Q1FY21 quarter, we have reviewed our accounting practices and revised them to achieve more prudent outcomes. The broad areas where changes were implemented in the current quarter were (i) Fee and expense recognition; (ii) Provisions on Standard Investments and red flagged accounts

Key Metrics for Q1FY21

Snapshot (As on June 30th, 2020) (in ` Crores)

Profit & Loss Q1FY21 YOY Growth
Net Interest Income 6,985 20%
Fee Income 1,651 (38%)
Operating Expenses 3,728 (2%)
Operating Profit 5,844 (1%)
Net Profit 1,112 (19%)
Balance Sheet Q1FY21 YOY Growth
Total Assets 897138 16%
Net Advances 561,341 13%
Total Deposits 628,150 16%
Shareholders' Funds 86,071 21%
Key Ratios Q1FY21 Q1FY20
Diluted EPS* (in `) 15.79 21.14
Book Value per share (in `) 305 272
ROA* 0.48% 0.69%
ROE* 5.74% 9.19%
Gross NPA Ratio 4.72% 5.25%
Net NPA Ratio 1.23% 2.04%
Basel III Tier I CAR1 14.62% 12.90%
Basel III Total CAR1 17.47% 16.06%

* Annualised
1 including profit for Q1

Deposits# 19% YOY

CASA+RTD#

20%YOY (QAB)
21%YOY (End Balance)

#QAB - Quarterly Average Balance

Domestic Advances 12% YOY

Retail Advances**

16% YOY

** As proportion of Total Advances

Operating Profit (` in crores)    1% YOY

Q1FY21
5,844*
Q1FY20
5,893

* Adjusted for accounting policy changes and NII reserves created, the operating profit would have been `6,151 crores, up 4% and PAT would have been been `1,626 crores, up 19%

Profit After Tax (` in crores)    19% YOY

Q1FY21
1,112
Q1FY20
1,370

Results at a Glance

Steady operating performance, net profit (1) up 19% YOY:

  • Net Interest Income in Q1FY21 grew by 20% YOY to `6,985 crores; NIM was 3.40%
  • Operating profit for Q1FY21 de-grew by 1% YOY to `5,844 crores
  • Adjusted for accounting policy changes and NII reserves created during the quarter, NII, operating profit and PAT for the quarter would have been `7,100 crores, `6,151 crores and `1,626 crore respectively, growing by 22%, 4% and 19% YOY, respectively

Growth in Deposits continues to drive Loan growth:

  • Total deposits grew 19% YOY on Quarterly Average Basis (QAB)
  • Savings Account deposits grew 15% YOY, Current Account deposits grew by 8% YOY and Retail Term Deposits (RTD) were up 27% YOY on QAB basis. CASA ratio was 39% on QAB basis
  • Including TLTRO investments, loan book and Corporate loans grew 17% & 26%; Retail loans up 16%

Strong Capital position with adequate liquidity buffers:

  • Overall Capital adequacy at 17.47% with Common Equity Tier 1 ratio of 13.50% at the end of Q1FY21 including profit
  • Average Liquidity Coverage Ratio during Q1FY21 of 120%, with excess SLR of `26,640 Crores

Sustained and continuous strengthening and de-risking of Balance Sheet, visible through improving Asset quality metrics, consistent build-up of additional provisions:

  • GNPA and NNPA declined to 4.72% and 1.23%, from 4.86% and 1.56%, respectively on QOQ basis
  • Our PCR* improved to 75% from 69% at March'20
  • Additional provisions held by the Bank at `6,898 crore, including provided during the quarter `915 crores
  • Including additional provisions, standard asset coverage ratio of 1.56%
  • Including all provisions (specific + standard + additional + Covid) coverage stands at 104% of GNPA

Among the top players in the digital space:

  • Mobile banking spends grew 174% YOY
  • Market share in UPI transactions stood at 19% for Q1FY21; quarterly transactions up 163% YOY
  • Share of digital channels in sourcing fixed deposits and personal loan disbursements stood at 75% and 65%, respectively in Q1FY21

1 Like for like comparison
* PCR excluding technical write-offs

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