You have managed to recover Rs 3,000 crore recently and Rs 1,500 crore in this quarter alone. You have also posted a profit this quarter versus a big loss last year. What is enabling all of this?
We have been able to make almost Rs 3,000-crore cash recovery and out of Rs 3,000 crore, the impact on P&L was Rs 2,500 crore and this is for the last nine months. But even during the current quarter, we could make a recovery of Rs 1,500 crore on a cash basis. Simultaneously, we have started disbursing loans and in the retail and MSME sectors, we have disbursed almost Rs 12,000 crore new loans. In the corporate side also we have disbursed Rs 2,000 crore.
We are also getting a good traction on the deposit side. We are reducing the rate of interest on deposits. Our cost of funds and cost of deposits are coming down and at the same time, we are able to reduce our operating costs by 13% year on year. Our expenses ratio has come down to 43%. So, good business growth coupled with recoveries and cost control have given us a decent profit.
You have given a cost to income ratio target of 40-45%. Is this for FY22?
On a sustainable basis, we would reach this number by the end of FY22 and we would be definitely within the 40-45% range in next financial year.
