Though faith in the new management has not built up and is unlikely that the bank will enjoy previous confidence levels in the market the Q4 results are pretty impressive for the public sector monolith. The PAT is up to INR40.5 B after its string of new provisioning died a natural death.
Gross NPAs remain above the bearable industry limit but have ticked down by nearly 4% to 4.44% from 4.61% Net NPAs are an important item of progress at 1.82% nearly 25% down from December. NPA provisions are less than INR 30 B at INR 28.37B with provision down 25% from INR41.6 B levels in March 2011. NII is better at INR 117 B from only INR 82 B in theY/Y comparisons with Treasury Income at INR 96 B Fee income is INR 52B and PCR has ticked up further froma respectable 65% to 68%
Increase in NII at 49% is based on much better NIMs and the Basel 1/2 CAR remains at 13.8% with india not updating the RWA guidelines for its area of influence. The bank was close to the brink at a CAR of 11.98% last year
PAT beat expectations by 13% Last quarter’s provisions were lower at INR24.1 B (not just NPA provisions) but Year End NPA provisions after catch forward accounting of all restructured accounts and data consolidation would have been much higher in the normal course