The provisions (including for NPAs) and contingencies by 48.9 per cent to Rs 3,891.5 crore in Q1Fy21 from Rs 2,613.7 crore in Q1Fy20. The specific loan loss provisions stood at Rs 2,739.8 crore in Q1Fy21 as against Rs 2,248.0 crore in June quarter last year. The general provisions and other provisions rose multi-fold to Rs 1,151.7 crore in Q1Fy21 from Rs 365.7 crore in Q1Fy20.
The bank said it has used its analytical models to determine slippages, resulting in a more expedited recognition of NPAs, and accelerated corresponding specific provisions. The Bank also continues to hold provisions against the potential impact of Covid-19 based on the information available at this point in time. These provisions are in excess of the norms prescribed by Reserve Bank of India.
The country’s second-largest lender is targeting to increase its market share by 6-7 percentage points to about 15%; eyes more business in smaller cities and villages.