Asset quality improves: The bank has improved asset quality in Q4FY2025.

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Business Highlights:

Healthy business growth: The business of the bank has increased 8% YoY to Rs 2292644 crore end March 2025, driven by 9% surge in advances to Rs 982894 crore. Deposits rose 7% to Rs 1309750 crore at end March 2025.

CASA deposits ratio declines yoy, rise qoq: The CASA deposits of the bank increased 4% YoY to Rs 426325 crore at end March 2025. The current account deposits increased 17% to Rs 86409 crore, while saving account deposits rose 1% to Rs 339916 crore end March 2025. The CASA ratio declined to 32.6% at end March 2025 compared to 33.6% at end March 2024, while rose slightly from 32.5% a quarter ago. The term deposits have increased 9% to Rs 883425 crore end March 2025. Overseas deposits have increased 70% to Rs 37999 crore end March 2025.

Strong loan growth: Advances growth was driven by retail loans rising 22% YoY to Rs 216777 crore at end March 2025, while MSME credit increased 12% to Rs 136423 crore at end March 2025. The corporate credit rose 7% to Rs 451215 crore, while credit to agriculture declined 3% to Rs 178479 crore end March 2025. The overseas credit has jumped 18% to Rs 36919 crore end March 2025.

Investment book of the bank increased 4% YoY to Rs 356954 crore at end March 2025. The SLR book moved up 4% to Rs 283074 crore, while non SLR book rose 4% to Rs 73880 crore at end March 2025. The AFS book dipped 63% to Rs 25418 crore, while HTM book rose 11% to Rs 305797 crore at end March 2025. The duration of the AFS investment portfolio stood at 5.17 years end March 2025 compared with 2.00 years at end March 2024.

Margins ease: The bank has shown 18 bps YoY jump in cost of deposits to 5.60%, while yield on advances declined 15 bps YoY to 8.72% in Q4FY2025. NIM has declined 22 bps YoY to 2.87%, while declined 4 bps qoq to 2.87% in Q4FY2025.

Branch expansion: The bank has added 47 branches and reduced 177 ATMs in Q4FY2025, taking overall tally to 8621 branches and 8910 ATM`s end March 2025.

Book value of the bank stood at Rs 140.8 per share at end March 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 130.1 per share at end March 2025.

Quarterly Performance

NII growth ease as NIM decline: Bank has recorded 5% increase in the interest earned at Rs 27695.22 crore, while interest expenses increased 7% to Rs 18181.17 crore in Q4FY2025. NII rose 1% to Rs 9514.05 crore in the quarter ended March 2025.

Healthy growth in the core fee income: Bank has posted strong 24% growth in core fee income to Rs 2488 crore, while the forex income surged 117% to Rs 299 crore and the treasury income zoomed 109% to Rs 1347 crore. Other income also moved up 5% to Rs 521 crore, leading to 18% jump in the overall non-interest income to Rs 5559.09 crore in the quarter ended March 2025. However, the recoveries and other income declined 35% to Rs 916 crore.

Expenses ratio improves: The operating expenses of the bank declined 3% to Rs 7372.99 crore, as other expenses moved up 19% to Rs 3303.86 crore, while employee expenses declined 16% to Rs 4069.13 crore in Q4FY2025. Cost to income ratio improved to 48.9% in Q4FY2025 compared with 53.8% in Q4FY2024, helping the Operating Profit to increase 18% to Rs 7700.15 crore.

Provisions and contingencies rise: The bank has shown 23% increase in provisions to Rs 1543.92 crore. The loan loss provisions rose 13% to Rs 1676 crore, while other provisions increased to Rs 69 crore. However, the bank has reversed investment provisions of Rs 18 crore and standard asset provisions Rs 183 crore in Q4FY2025.

Effective tax rate declined to 19.0% in Q4FY2025 from 37.2% in Q4FY2024. Net Profit rose by 51% YoY to Rs 4984.92 crore during quarter ended March 2025.

Financial Performance FY2025:

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