The results are very good. The machine is consistently delivering and now it’s been a few qtrs of consistently good loan growth and low provisions, percolating down to good profits. The investor skepticism will definitely further reduce post this result
| Jun-21 | Sep-21 | Dec-21 | Mar-22 | Jun-22 | Sep-22 | Dec-22 | |
|---|---|---|---|---|---|---|---|
| NII | 2,186 | 2,272 | 2,580 | 2,669 | 2,751 | 3,002 | 3,286 |
| Fee & Other Income | 449 | 658 | 744 | 841 | 899 | 945 | 1,117 |
| PPOP | 1,013 | 654 | 783 | 840 | 958 | 1,184 | 1,277 |
| Provisions | 1,879 | 475 | 392 | 369 | 308 | 424 | 450 |
| Provisions/Net Ret…Wholesale Assets | 1.73% | 0.43% | 0.34% | 0.30% | 0.23% | 0.30% | 0.31% |
| PBT | -865 | 179 | 391 | 470 | 650 | 760 | 827 |
| Tax | -244 | 68 | 101 | 118 | 165 | 193 | 210 |
| PAT | -621 | 111 | 290 | 352 | 485 | 567 | 617 |
| Net Retail and Wholesale Funded Assets | 108628 | 111353 | 116422 | 124075 | 132555 | 140239 | 147109 |
| CASA Deposits | 45896 | 46269 | 47859 | 51170 | 56720 | 63305 | 66498 |
| CASA % | 51.75% | 51.3% | 51.6% | 48.4% | 50.0% | 51.3% | 50.0% |
| GNPA | 4.61% | 4.27% | 3.96% | 3.70% | 3.36% | 3.18% | 2.96% |
| NNPA | 2.32% | 2.09% | 1.74% | 1.53% | 1.30% | 1.09% | 1.03% |
the management has gone about the transformation of this organisation in a near surgical manner. Attacking issues one by one, rightly prioritizing – focusing on liabilities before switching on the asset growth engine
COVID (retail NPA shooting up), unexpected credit issues (telecom etc.) were big challenges. In retrospect we can say that these were handled well
We still have issues related to the sustenance of
- stickiness of the high interest driven CASA and
- high NIMs with low credit cost
CEO is consistently explaining the reason for the same without changing the script. CASA rates are dynamic that can and have changed at will. The money has come…
the bank has broad based its products suite to improve customer engagement at multiple points – credit cards, not ignoring the corporate book – case in point
The organisation has developed over a decade an expertise in serving a customer segment that pays well – from Capital First times, this segment is now being served out of the bank instead of NBFC
The management has demonstrated the ability to capture the public interest by crisp and imaginative communication. high interest rates on deposits, crediting on monthly basis against qtr, getting AB as ambassador, 0 fees… backed by increasing branches and a good technology backbone… gives comfort that the bank will continue to get traction
Consistently reducing results announcement timeline is also a good step
Equity dilution is clearly an overhang, hopefully it will be accretive to existing shareholders – marquee investors at premium to CMP
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