About the Company:
With the aim of constant desire to serve better, the bank has 4,599 outlets pan-India, which are serving more than 2.1 crore customers. In synchronization with the philosophy of ‘Aka Bhala Sabki Bhalai’ ad financial inclusion, the bank is committed to provide a host of products and services, comparatively at par with other banks.
India’s mid-level private sector bank has declared the results for the fourth quarter of financial year ending March 2020.
- Net Interest Income: NII is the difference between interest earned and interest expended that is the key factor for bank’s financial health status is increased by 9.07% QoQ while on YoY basis, there is an increase of 33.62% growth stating that interest earned is grown more than interest expanded.
- Net Profit after Tax: On QoQ basis, the bank has posted 29.24% down PAT due to rising provisions by Covid-19 while on YoY basis; net profits are plunged by 20.52%.
- Provisions and Contingencies: Bank's provisions and contingencies are landed to Rs 82,736.46 lakhs; are doubled on quarterly basis and increased four-fold on yearly basis.
- Net NPA: Net NPA ratio is fallen by 28.40% QoQ.
- Dividend Payout: The Board of Directors recommended no dividend in light of Covid-19 pandemic as RBI has directed not to declare any dividend to conserve capital and support the financials.
As per LokeshSethia, SEBI Registered Research Analyst, the bank has posted a decent increase in NII numbers. Deposits have been surged by 32.04% while loan book grew 60.36%. Banks CASA(Current account savings account) ratio has landed to 36.84%. The bank has added an amount of 690 crores as provisions in light of Covid-19 crisis. Asset quality of the bank is stable. We advise you to 'Hold' the script for target of Rs. 320 in one year horizon.