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Target: ₹777
CMP: ₹728.7
Q4-FY22 marks the manifestation of sequentially lower provisioning expenses (₹990 crore v/s ₹1,300 crore in the previous quarter) and 14 per cent sequential increase in net profit at ₹4,100 crore.
The banks reported slippages number were lower (₹3,980 crore v/s ₹4,150 crore in Q3-FY22) with GNPA and NNPA ratio narrowing down to 2.82 per cent and 0.73 per cent respectively against the GNPA and NNPA ratio of 3.17 per cent and 0.91 per cent in the previous quarter.
The bank's PCR (including two) stood sequentially higher at 91 per cent. Credit offtake (13.5 per cent y-o-y) maintained, led by growth across segments. Furthermore, the BB & below book came down sequentially by 13bps to 0.75 per cent of customer assets and reported lower restructured advances of ₹4,000 crore (about 52bps of gross loan book).
On the business front, credit growth (13.5 per cent y-o-y and 6.4 per cent q-o-q) and healthy deposit growth (16.2 per cent y-o-y and 6.5 per cent q-o-q) were superior against the previous quarter. The future outlook of asset quality is at a manageable level as the strong standard asset coverage (1.8 per cent of gross loans) is likely to absorb delinquencies from restructuring.
In view of adequate covid buffer, glimpse of growth rejuvenation and manageable restructuring pool.
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