The financial institution’s internet curiosity margin, a key profitability parameter, has fallen to 2.01% for the quarter as towards 2.90%.
Working revenue dipped 21% at Rs 2094 crore from Rs 2653 crore whereas curiosity revenue fell 9% at Rs 9327 crore over the year-ago interval’s Rs 10,528 crore, the financial institution stated in a regulatory submitting.
About 4.5 occasions decrease provisions together with these to cowl dangerous loans saved the day for the financial institution. The financial institution made provisions of Rs 1831 crore throughout the quarter towards Rs 8142 crore final time with enchancment in asset high quality over the one 12 months interval. Gross non-performing belongings ratio stood at 13.77% on the finish of March, in contrast with 14.78% a 12 months again. The ratio nevertheless rose from December 2020’s 13.25%.
Provisions protection ratio nevertheless remained wholesome at 86.24% in contrast with 83.75% over the identical interval.
The financial institution’s advances shrunk 1.5% to Rs 4.1 lakh crore as of finish of March, on account of contraction in abroad lending to Rs 48,075 crore from Rs 58,852 crore whereas dometic lending grew a modest 1.35 to Rs 3.6 lakh crore. The muted credit score development is essentially on account of 15% fall in company mortgage demand.
It wrote off Rs 4746 crore within the March quarter towards Rs 1,638 crore a 12 months again.
The financial institution’s capital adequacy ratio remained comfy at almost 15% on the finish of March.