My takeaways from conference call.
- NIMS are at all time high of 5.7% and will stabilise at 6%.
- Have excess liquidity @ 172% as against requirements of 100% as per RBI. As a result bank will not grow their liability book for 1 or 2 more quarters to drain excess liquidity.
- Expect cost to income ratio at elevated levels for FY 22 and will see the operating leverage kicking in FY 23.
- Collection efficiency last quarter was at 1% lower than pre-covid levels and this quarter has surpassed even the pre-covid levels and past NPAs are paying back.
- GNPAs and NNPAs will stabilise to 2% and 1% sooner than expected.
- Will not systematically bring down corporate book but will bring down infrastructure book and grow Retail book by 25% easily.
- The guidance of 3000 crore provisioning remains unless third wave and Vodafone Idea plays out. Next year 2% guidance for NPA on track.
- Bank will earn 250 crores par quarter by reprising of legacy loans, 325 per quarter as our retail business matures and 75 crores per quarter once Credit Card business achieves breakeven in all additional 650 crores per quarter profits just by realigning business and achieving critical mass.
- The CEO said you have been with us 3 years patiently now see in next 3 years where we will be.