Expecting a spike in bad loans from the microfinance book, the bank chose to make an additional provision, on a prudential basis, of Rs 414 crore on gross NPAs of the joint liability group portfolio, taking total NPA provision on this portfolio to 85%. This had the bank’s overall provision coverage ratio including technical write-offs at 93.46%.
Credit cost, including above additional provision on GNPAs in the JLG loans, was 139 bps for the period.
The total provisions of the bank including specific, general and contingent provisions are at 110% of GNPA.
Net interest income grew 3% on-year to Rs 1,585 crore, while net interest margin stood at 4.90% and other income rose 38% to Rs 1,073 crore; core fee income for the quarter rose 19% to Rs 871 crore.
Deposits grew 15% to Rs 1.07 trillion, of which the low cost Casa grew 12% to Rs 35,022 crore which is 32.8% of overall deposits.
Advances grew 13% to Rs 90,412 crore, of which retail loans grew 19%, housing loans grew 33%, vehicle finance grew 30% and commercial banking grew 21%.