Quick notes from SIB concall:
- Cost of funds → continue to rise due to deposit repricing, cost of deposit 5.18%
- Cost to income → As compared to peer, is higher; close to 62%; provided IBA rate settlement, accounted for 15%, but final settlement amount was 17% (additional Rs. 24 crore); even without this cost to income is still higher, management is looking to improve it - Looking to increase customer facing employee from 75% to 85% thus increasing branch productivity; can decrease cost to income
- CD Ratio → Currently ~78% CD ratio, deposits book grew 9% yoy; have some space to grow which can be P&L accretive
- Contraction of NIMs → NIMs currently is 3.19% on account of liabilities repricing faster than assets, squeezing the margins. Want to restructure balance sheet, have higher yielding assets.
- Will be targeting MSME and retail, in 3-4 years want to bring corporate loan book to near 30% from 38%, the 6-7% difference will be added to higher yielding assets (MSME, LAP etc.)
- Capital Raise → No decision has been taken yet
- Enhancing Portfolio Resilience → want to have more granular book
- Deposit Concentration → 62% of deposits come from Kerala
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