The bank saw a sharp pull back in loan, led by tighter pricing as well as an increase in delinquencies in some segments. Consolidated loan growth slowed to 7.5% YoY (Standalone at 10% YoY). Growth slowed across segments, corporate (+4% YoY) and vehicle (-3% YoY), while non-vehicle retail also slowed to 17% YoY (vs 25% a year ago).

NII growth was relatively healthy at 17% YoY, as NIMs were up +10bp QoQ on the back of deposit rate cuts.

On the back of corporate slippages and stress in unsecured retail book, asset quality stress saw some increase in 3QFY20. The bank is well capitalised with CET at 19% but the management remains cautious on growth outlook.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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