The market was not too enthused with this Kerala based bank’s Q3FY15 performance. The Bank’s asset quality fell – Net NPA rose from 0.66% to 0.69% (QoQ) while Gross NPA rose from 2.10% to 2.19%. Though YoY, the asset quality has improved, the market is worried as to why it fell again sequentially. And then in terms of net profit, it came in at Rs.265 crore, up 15% (YoY) and QoQ, it was up 10%.

This bank is recognized mainly as a ‘Kerala NRI’ bank and its deposits fully indicate the same – of the total deposits of Rs.65550 crore as at 31st Dec 2014, NRI deposits made up for 34% of the total.  And total advances were Rs.48026 crore, of which 33% were disbursed to retail, 25% to SME and 12% to Agriculture. The bank has written back provisions worth Rs 82 lakh in current Q3 compared to write back of Rs 18 crore in Q3FY14. The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 14.51% as on 31 December 2014, compared with 14.45% as on 30 September 2014 and 14.80% as on 31 December 2013. The Bank added 6 branches and 35 ATMs during the quarter to take the tally to 1220 branches and 1470 ATMs as at December 31, 2014.