Anticipating a slower economic revival, state-owned said that it would focus on cost optimization and increasing fee income to improve the bottom line in FY22. The second wave of the pandemic at the beginning of FY22 derailed the economic growth outlook.
At the same time there is optimism that with a higher proportion of the population getting vaccinated, there will be a turnaround in the economic activity as has been witnessed in other countries.
It is looking to realise the full benefit of the amalgamation with Allahabad Bank by way of bringing down the expenses through rationalisation of overheads. While the bank’s expenses ratio improved by 149 bps to 47.59% in FY21, its operating expenses rose 12% to Rs 10,349 crore. Its fee income rose by 3% in FY21 to Rs 2,368 crore while interest income rose 2% to Rs 39106 crore.
