PTIThe net interest margin, which is a key profitability parameter, was 7.3% for the quarter as compared with 8.7% in the year-ago period.
The bank's net interest income was 2.7% lower at Rs 2470 crore while other income dipped 35% at Rs 629 crore.
"The worst is over. There would be no fresh stress in the coming quarters as recovery has improved," managing director Chandra Shekhar Ghosh told ET. "We would like to maintain NIM at 7-7.5% levels."
Operating profit was also 29% lower at Rs 1769 crore. It made a provision of 735 crore for the quarter under review as against a mere Rs 5 crore in the year ago period.
"You would recall we had taken huge one-time provisions and a loss in the second quarter of FY22. There were not many provisions in the following quarters of FY22. That's the reason for this gap in provision numbers in the fourth quarters in FY23 and FY22," Ghosh said.
The bank's gross non-performing assets ratio improved to 4.9% at the end of March as against 6.5% a year back. Net NPA ratio stood at 1.2% against 1.7%.
The size of the stressed microfinance loans pool has reduced to Rs 5500 crore at the end of March from Rs 7600 crore three months prior to that, on account of Rs 2316 crore of sale of bad loans to asset reconstruction companies. One-third of the remaining stressed loans remained sticky for more than 90 days.
The lender slowed microfinance loan disbursement at Rs 21170 crore in the fourth quarter as compared with Rs 22970 crore in the year ago period.
"Microfinance loans disbursement has grown sequentially in the last three quarters. We expect this to grow further," Ghosh said.
He expects the new business streams such as commercial vehicle lending, loans against property for business, government business operations, among others to grow the topline as well as the bottomline over the next few quarters
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