The lender had previously estimated around Rs 3,000-4,000 crore from its moratorium book to come under one-off structuring. However, over a period of time, the moratorium book dropped drastically from 27 percent in March to 15-16 percent (Rs 14,000-15,000 crore) in late August, he said.
“We had previously expected that 15-20 percent of the total moratorium book would go to restructuring. But now we think only Rs 1,000-1,500 crore from our total progress will come up for restructuring,” Rajeev said.
The bank’s total advance amounted to Rs 1.03.408 crore per. September 30, 2020.
In August, the Reserve Bank of India had announced one-off structuring for personal and business borrowers affected by COVID-19-related stress. Under the scheme, the decision must be invoked before 31 December 2020.
So far, the lender has restructured 800 small accounts, including MSMEs worth Rs 40 million, under the scheme.
“There are one or two major accounts worth 150-200 cr. In the pipeline (for restructuring). These are consortium loan accounts and the decision on restructuring will be made by the respective managers,” he said.
In the quarter ending September 30, 2020, the Pune-based bank reported a 13.44 percent growth in its independent profit after tax of 130 rs compared to 115 rs in the same quarter of the previous fiscal policy.
On a consolidated basis, its net profit was Rs 130.44 crore in the second quarter of FY21 compared to Rs 115.15 crore last year in the same quarter.
The increase in profit was due to higher net interest income, lower bad loans and a reduction in operating expenses.
“Last quarter (Q2FY21) was relatively very good. I’m sure our numbers would be better in the next quarter compared to the September quarter because we have already allocated more than Rs 1,000 crore related to COVID or to any kind of emergency, ”Rajeev said.
The lender does not anticipate any problem in terms of preparation until March 31, 2021.
During the first half of the current fiscal policy loan, the lenders’ recovery was $ 678 million, and it expects to recover another $ 1,000 million over the course of the second half, Rajeev said.
In the period April-September, the bank settled to a value of 225-250 crs of accounts under its one-time settlement schemes (OTS) and has received almost 60 percent from these accounts. It expects some more recoveries from such accounts by March 31, 2021.
In the second half, it expects around Rs 250 crore to Rs 300 crore settlement under OTS.
Lender is gross NPA reduced to 8.81 percent in the September quarter from 16.86 percent last year. Net NPA fell to 3.30 percent against 5.48 percent in the same quarter of the previous fiscal policy.
Rajeev said he expects gross NPA to be below 8 percent and net NPA lower than three percent by the end of March.
He sees an addition of no more than Rs 500-600 crore in NPAs each in Q3 and Q4 of the current fiscal policy.
In the first half of the year, the bank’s deposits grew by 12.15 per cent. Year-on-year and progress by 13 per cent. In the first half, and it also expects the same trend in the second half.
“We are of the opinion that total deposits can grow by about 12-14 percent and advances can grow by 14-16 percent in the second half,” he said.
The bank’s capital adequacy ratio was 13.18 per cent with a core capital ratio of 10.31 per cent at the end of September. It has already received board approval to raise Rs 3,000 crore, which includes Rs 2,000 crore through equity and Rs 1,000 crore from bonds.
“We may raise funds through bonds (AT1 and Level II) in the second half in different tranches. We do not have AT1 bonds at present, so we are raising 400-500 crs of such bonds. We are also raising 400- Rs 500 crore tier “II bonds, if required. With this, our capital adequacy position will be over 14 percent for the current year,” Rajeev said, adding that the decision to raise capital must be made next year.
He said the bank may not require capital injection from the government in this fiscal policy.
The lender has also entered into the credit card business and has already issued close to 5,000 cards. It seeks to expand its base in the segment from the fourth quarter of the current fiscal policy, Rajeev added.