Here are the financial highlights
|Particulars||Sep-20 Quarter||Growth (YOY)||Growth (QOQ)|
|Key Ratios||Sep-20 Quarter||Sep-19 Quarter||Jun-20 Quarter|
|Net Profit Margin||20.06%||18.37%||18.88%|
|Gross NPA (%)||1.08%||1.38%||1.36%|
|Net NPA (%)||0.19%||0.42%||0.33%|
|Return on Assets||0.48%||0.50%||0.44%|
Key takeaways from the Sep-20 quarter results
- After nearly 20 quarters of consistent growth in top line and profits, the bank has managed to maintain growth in top line at 6.4% and net profits at 16.16% on a yoy basis. This came on the back of sharp expansion in the overall business.
- The bank has managed its gross NPAs in a tight leash at 1.08%, sharply lower than 1.4% levels where its gross NPAs had stabilized in the recent past. This is a big positive shift in asset quality. Net NPAs at 0.19% indicates that most losses are provided for.
- For the latest quarter also, retail banking continued to dominate the revenues followed by wholesale banking and treasury in that order. For the quarter, the net interest income or NII was up 16.7% at Rs.15,776 crore.
- The boost to the net interest income was driven by two key factors. It was driven by 21.5% growth in assets during the quarter and core net interest margin or NIM at an attractive level of 4.1% for the quarter.
- For the quarter, the bank made provisions and contingencies of Rs.3704 crore towards specific and general purposes. Its core credit cost ratio has also come down from 1.08% to 0.91%.
- The total deposit base grew at 20% but that was largely driven by 27% growth in CASA deposits in the Sep quarter. Capital adequacy at 19.1% is nearly 150 bps higher than last year and among the best in the industry.