The deposit and credit grew at 31 per cent and 24 per cent respectively in the full-year period. The growth in business was aggressive, considering the full-year credit and deposit growth in the whole of the banking system were only at 6 per cent and 11 per cent, respectively. The capital adequacy ratio (CRAR) improved to 16.18 per cent from the 15.31 per cent in the previous quarter. However, the bank has no plans to raise equity to improve the ratio, said Managing Director Ramesh Sobti.
The gross non-performing assets (NPAs), as a percentage of total advances, in the present quarter stood at 1.09 per cent, from 0.93 per cent in the March quarter. In the year-ago quarter, the gross NPA ratio was at 0.91 per cent. Provisions for the quarter saw a 38 per cent dip to Rs 309.97 crore from Rs 430.13 crore a quarter ago. However, it was a 34.5 per cent rise from Rs 230.47 crore. Sobti said of the 12 accounts identified by the Reserve Bank of India (RBI) for insolvency, the bank had a total exposure of Rs 50 crore for three accounts. These have been adequately provided for, he said.
In the quarter, the lender has made a floating provision of Rs 70 crore against the account of J P Associates, reversing a provision of Rs 122 crore made in the fourth quarter of FY17.