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 “The bank has delivered a steady performance for the first quarter of FY25, driven by growth in advances and deposits, and stable asset quality. This performance is in line with the guidance provided by the bank for FY25. During this quarter, our gross advances grew by 41.8% y-o-y and 4.5% q-o-q to Rs. 9,037 crores, and deposits grew by 42.2% y-o-y and 4.6% q-o-q to Rs. 8,137 crores. The bank’s disbursements stood at Rs. 1,740 crores with growth across all segments. The Vikas Loan continued to grow at a decent pace and was supported by significant traction in the wheels and home loan segments.

Asset quality has remained stable, with GNPA at 2.7% at the end of June 2024, down from 3.0% in June 2023 and 2.8% in March 2024. The bank has further increased PCR from 71.2% in March 2024 to 83.9% in June 2024. The NNPA stood at 0.4% at the end of June 2024, down from 1.6% in June 2023 and 0.8% in March 2024. The bank continues to cover the eligible unsecured portfolio under the CGFMU scheme to mitigate any unforeseen risks. Under this scheme, the bank has successfully made its first claim of ~ Rs. 32 crores which was 100% of the accounts which were eligible for claim and the entire amount was received in Q1FY25.

Our focus on improving our deposit base is evident with reducing share of bulk deposits with retail deposits now constituting around 79% of the total deposits as on June 2024 and CASA now representing 17.7% of our overall deposits, up from 14.9% in June 2023. The deposits sourced through digital channels stoodat ~ Rs. 100 crores as onJune 2024. Currently thedaily deposit runrate sourced throughthis channel stands at Rs. 1.5 to 2 crores.

Net Interest Income (NII) grew by 30.5% y-o-y and 8.3% q-o-q to Rs. 293.2 crores.

We have effectively managed our operational efficiencies and are on track to achieve a favourable Cost to Income ratio of 57% to 58% by FY25. Our Cost to Income as of June 2024 stood at 60.3%. Pre-Provisioning Operating Profit (PPOP) grew by 23.2% y-o-y and 12.4% q-o-q to Rs. 144.3 crores, while Profit After Tax (PAT) grew by 47.2% y-o-y and 15.1% q-o-q to Rs. 70.1 crores.

As we move forward, we are confident in our ability to sustain this momentum and explore new opportunities to further strengthen our position in thebanking ecosystem. We are on track to achieve our stated guidance for FY25.”

Business Performance – Q1FY25

* The Bank's gross advances stood at Rs.9,037* crores in Q1FY25 as compared to Rs.6,372* crores in Q1FY24, an increase of 41.8% year on year

* Disbursements stood at Rs.1,740 crores in Q1FY25 as compared to Rs.1,190 crores in Q1FY24, an increase of 46.3% year on year

* Disbursement continues to be strong in all segments supported by significant traction in Vikas Loans, wheels, and home loan segments.

* Vikas Loan disbursement stood at Rs.513 crores in Q1FY25 as compared to Rs.213 crores in Q1FY24, an increase of 141.2% year on year

* Deposits stood at Rs.8,137 crores in Q1FY25 as compared to Rs.5,722 crores in Q1FY24, an increase of 42.2% year on year

* Share of retail deposits stood at 78.9% in June’24, as compared to 75.7% in June’23

* CASA ratio stood at 17.7% as on June’24, compared to 14.9 % in June’23

* Collection efficiency (1 EMI adjusted) stood at 94.8% in Q1FY25 as compared to 95.9% in Q1FY24

* Collection efficiency excluding NPA (1 EMI adjusted) stood at 97.4% in Q1FY25 as compared to 98.2% in Q1FY24

* The Bank has ~30.0 lakh customers as on June’24, as compared to ~24.3 lakh customers in June’23, an increase of 23.6%

* Total number of banking outlets stood at 701, with 115 being liability-focused outlets and 392 being asset focused branches and balance 194 are rural centers

* Total number of employees stood at 7,715

Financial highlights – FYQ125

* Net interest income stood at Rs.293.2 crores in Q1FY25 as compared to Rs.224.7 crores in Q1FY24, an increase of 30.5% year on year

* Net total income stood at Rs.363.4 crores in Q1FY25 as compared to Rs.275.7 crores in Q1FY24, an increase of 31.8% year on year

* Cost of Funds stood at 7.6% in Q1FY25 as compared to 7.0% in Q1FY24

* Cost to income stood at 60.3% in Q1FY25 as compared to 57.5 % in Q1FY24.

* Pre-Provisioning Operating Profit stood at Rs.144.3 crores in Q1FY25 as compared to Rs.117.1 crores in Q1FY24, an increase of 23.2% year on year

Asset Quality and Capital – Q1FY25

* Gross NPA* stood at 2.7% as on June’24, compared to 3.0% in June’23

* Net NPA stood at 0.4% as on June’24, compared to 1.6% in June’23

* Provision coverage ratio (excluding technical write-offs) stood at 83.9% as on June’24, compared to 47.3% in June’23

* CRAR of the Bank stood at 27.3%; Tier I capital of 25.7% and Tier II capital of 1.6%

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