Major Highlights of Q1FY20

Operating Profitability improved materially

  • NII up 13% YOY, 19% adjusted for one-offs
  • Operating profit up 35% YOY
  • ROE for the quarter at 9.19%

Deposit Franchise had a strong quarter

  • Total Deposits up 24% YOY on quarterly average basis
  • CASA + Retail Term Deposits up 24% on quarterly average basis

Asset Quality metrics are progressing well

  • NPA ratios continue to improve
  • BB & Below pool stable sequentially

Provision Coverage continues to be strengthened

  • Provision Coverage Ratio increased further, stands at 78%
  • The Bank holds additional provisions of `2,358 crores outside PCR calculations

Growth metrics were healthy

  • Domestic loan book grew 19% YOY
  • Retail book grew 22% YOY and domestic corporate loans grew 16%
  • Retail loans now constitute 52% of the overall loan book

Key Metrics for Q1FY20

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

Profit & Loss Q1FY20 YOY Growth
Net Interest Income 5,844/span> 13%
Fee Income 2,663 26%
Operating Expenses 3,820 3%
Operating Profit 5,893 35%
Net Profit 1,370 95%
Balance Sheet Q1FY20 YOY Growth
Total Assets 774,566 12%
Net Advances 497,276 13%
Total Deposits 540,678 21%
Shareholders' Funds 71,228 11%
Key Ratios Q1FY20 FY19
Diluted EPS (Annualised in `) 21.14 10.93
Book Value per share (in `) 272 250
ROA (Annualised) 0.69% 0.40%
ROE (Annualised) 9.19% 4.94%
Gross NPA Ratio 5.25% 6.52%
Net NPA Ratio 2.04% 3.09%
Basel III Tier I CAR1 12.90% 13.22%
Basel III Total CAR1 16.06% 16.71%

1 including profit for Q1

Deposits 21% YOY

CASA+RTD
24% YOY (Quarterly Average Balance) 21% YOY (End Balance)

Domestic Advances 19% YOY

Retail Advances^
22% YOY

^ As proportion of Total Advances

Operating Profit (` in crores)

Q1FY20
5,893
Q1FY19
4,372
35% YOY

Net Profit (` in crores)

Q1FY20
1,370
Q1FY19
701
95% YOY

Domestic Branch Network*

June-19   
4,094
March-19
4,050
March-18
3,703
March-17
3,304
March-16
2,904
March-15
2,589

* Includes extension counters

2019-2020 Quarterly Results - Q1

Results at a Glance

Operating Profitability improved significantly:

  • Net Interest Income for Q1FY20 grew 13% YOY to `5,844 crores; NIM stood at 3.40%
  • Fee income for Q1FY20 grew at 26% YOY, led by Retail Fees, which grew 28% YOY
  • Operating expenses growth was 3% - significantly lower than growth in revenue. This resulted in a further improvement in Cost to Assets ratio to 2.08% from 2.13% in Q4FY19
  • Operating profit for Q1FY20 grew 35% YOY and stood at `5,893 crores

Provision Coverage enhanced:

  • Provision Coverage Ratio of the Bank improved sequentially to 78% from 77%
  • Created additional provisions of `994 crores over and above required NPA provisioning
  • The Bank now holds `2,358 crores of provisions for various contingencies

Profitability continues to improve steadily:

  • Net Profit for Q1FY20 stood at `1,370 crores, up 95% YOY
  • Book Value per share improved to `272 up from `259 as at end of Q4FY19

Asset quality metrics continue to improve:

  • GNPA and NNPA fell for the 5th straight quarter. Stands at 5.25% and 2.04%, as compared to 5.26% and 2.06 % as at the end of Q4FY19
  • Gross slippages for the quarter stood at `4,798 crores
  • Downgraded `2,242 crores into BB during the quarter, largely from groups that have shown new signs of stress in recent months
  • Post this, outstanding BB & Below corporate loans was stable at 1.3% of customer assets

Continue to grow loan book cautiously and steadily:

  • Domestic loan growth stood at 19% YOY
  • Retail loan book grew 22% YOY while domestic Corporate loan book grew 16% 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 24% YOY
  • CASA and Retail Term Deposits together were up 24% YOY on quarterly average basis

Among the top players in the digital space:

  • Mobile banking spends grew 73% YOY, Credit Card spends grew 29% YOY
  • Market share in UPI transactions stood at 11% for Q1FY20
  • Share of digital channels in personal loan disbursements increased to 46% from 31% in Q1FY19

The Bank’s Capital Adequacy Ratio (CAR) remains stable.

  • Under Basel III, Total CAR & Tier I including profit for Q1FY20 stood at 16.06% and 12.90% respectively.
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