The provisions and contingencies also declined substantially to Rs 567.5 crore in Q4FY20 from Rs 177.76 crore in Q4FY19. The provision coverage ratio (PCR) improved to 93. 74 per cent at end of March 2020, up from 82.88 per cent in March 2019.
As of March 31, 2020, the bank has made Covid-19 related provisions of Rs 247 crore. The provision made by the bank is more than the minimum required according to RBI guidelines.
When asked about adverse impact on borrowers due to economic shock, R Sharma, managing director & chief executive offiver of bank said that those working in aviation, hotel and tourism industry had been affected. He said that the bank was in discussion with them and would closely monitor developments.
The bank has made an additional provision of Rs 431.05 crore during Q4FY20, over and above the regulatory norms for certain borrower accounts due to the inherent risk and uncertainty of recovery in these identified accounts.
The asset quality of bank, which is under Prompt Corrective Action
(PCA), showed an improvement in slippage during the fourth quarter. The gross non-performing Assets (GNPAs) stood at 27.53 per cent in Q4FY20 as against 27.47 per cent in Q4FY19.
While the gross NPAs
stood at 28.72 per cent at end of December 2019 (Q3FY20), net NPAs
declined to 4.19 per cent in March 2020 from 10.11 per cent in March 2019.
The bank has achieved all PCA parameters for Q4FY20 and will make a presentation to Reserve Bank of India based on the recent performance.
The bank's capital adequacy ratio (CAR) stood at 13.31 per cent as on March 31, 2020 with Tier I at 10.57 per cent and Tier II at 2.74 per cent, respectively.