The provision coverage ratio stood at 76.8% as on December 31, 2020. The net interest margin improved to 3.4%, showing a Y-o-Y growth of 200 bps and Q-o-Q rise of 30 bps.
Chunduru said bank will have to only restructure 1.6% to 2% of the loan book post-lifting of the moratorium and the collection efficiency during December stood at above 90%.
There is a need for fin-techs to place greater focus on collections in the light of heightened delinquencies and a riskier customer base, the report said. “Compared to peer members, the huge volumes sourced by fin-techs were largely small-ticket loans and from riskier segments,” the report said.
“One of the creditable features associated with micro finance has been its lower loan defaults, which have been made possible by better management and supervision of the credit portfolio through the employment of social collateral of self-help groups. SFBs, many of which were erstwhile NBFC-MFIs, too have reported low NPA ratios,” the report said.
Muthoot exited its white label ATM business in December 2020 as the venture was not making money. He said digital transactions are increasing and more than 60% of customers do some digital transactions.
The company is in the process of launching Bajaj Pay for consumers in Q4, which will offer an integrated payment solution comprising Unified Payments Interface (UPI), prepaid payment instrument (PPI), equated monthly instalment (EMI) card and credit card to its customers.
Provision and contingencies for the quarter under review stood at Rs 421 crore, an Y-o-Y increase of 161% from Rs 161 crore provided in the year ago period. The bank recorded an operating profit of Rs 963 crore during the quarter, against Rs 743.82 crore in the same quarter last year.
“Presently, the borrower is a non-performing asset with the bank/other lenders and is facing litigations initiated by other lenders viz. recovery suit with DRT,” the notice said. The asset is being offered on a cash-only basis.
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