Loan repayment was severely hit due to the second wave and fresh lockdowns with collection efficiency fell to 78 per cent in June against 94 per cent in March, the bank said. The ratio improved to 93 per cent in July for the bank.
“The second Covid wave and consequent restrictions and lockdowns lashed the industry, especially the micro banking sector,” chief executive Nitin Chugh said.
Its operating profit fell 24 per cent at Rs 163 crore compared with Rs 215 crore over the same period.
The bank created a floating provision of Rs 250 crores to absorb the impact of potential slippages in near future. Its total provision stood at Rs 1,149 crore, covering 8.2 per cent of gross advances, which shrunk 2 per cent year-on-year to Rs 14,037 crore. Provision coverage ratio improved to 75 per cent from 60 per cent three months back.
Its asset quality sharply deteriorated with gross non-performing assets ratio rising to 9.8 per cent at the end of June as against 1 per cent a year back. Net NPA was at 2.7 per cent compared with 0.2 per cent for the same period. The bank wrote off loans worth Rs 280 crore.
“We are hopeful that our customers will resurrect their livelihoods and continue to be resilient. We continued to diversify our asset book as a strategic approach,” he added.
The bank’s non-micro banking portfolio grew to 32 per cent from 22 per cent over the year with the secured portfolio rising to 30 per cent from 21 per cent earlier.
Its deposits rose 24 per cent at Rs 13,673 crore with current and savings bank account ratio being at 20.3 per cent, an improvement from 14.2 per cent a year back.
