The bank did post a good set of numbers, vis-à-vis the given circumstances but because it fell below analyst expectations, the stock price had slumped post the announcement of Q4/FY14 numbers. The bank posted a 23% (YoY) rise in net profit at Rs.2326 crore. NII was up 15% at Rs.4953 crore and NIM showed a very good growth at 4.4%, up 20 bps sequentially. This good performance was driven mainly by other income which is non-interest revenue at Rs.2,001 crores was 29% of the net revenues for Q4 and was up 11% (YoY). The four components of other income for the quarter were fees & commissions, up 9%, foreign exchange & derivatives revenue was up 25%, while gain on revaluation / sale of investments of almost halved, down 49%. Its fourth component, including miscellaneous income including recoveries did better, up 26%.

It kept a tight leash on costs, rising by just 1% and cost-to-income ratio for the quarter was at 45.7% as against 51.4% (YoY). Regarding asset quality, Gross NPA came in at 0.98% v/s 1.01% in Q3 and 0.97% in Q4FY13. Net NPA was at 0.3%, same as in Q3 but YoY, it had gone up by 10 bps. Total restructured loans were at 0.2% of gross advances as of March 2014. Provisions at Rs.286 crore were marginally lower, down 5% (YoY) and down 26% sequentially. What is also pertinent to note is that its effective tax rate for the quarter was up at 33.4% against 29.0% in Q4FY13.

Total deposits as at 31^st March 2014 grew 24% while advances rose 26%. The Bank’s total Capital Adequacy Ratio (CAR) as at March 31, 2014 (computed as per Basel III guidelines) stood at 16.1% as against a regulatory requirement of 9%. Of this, Tier-I CAR was 11.8%.

The Bank has continued its branch expansion adding 341 branches in the year ended March 31, 2014, of which 230 of these branches are in unbanked locations. As of March 31, 2014, the Bank’s distribution network was at 3,403 branches and 11,256 ATMs in 2,171 cities / towns as against 3,062 branches and 10,743 ATMs in 1,845 cities / towns as of March 31, 2013. 55% of the total branches are now in semi-urban and rural areas.

The Bank ended FY14 with a 27% rise in consolidated net profit at Rs.8764 crore on a 18% rise in NII at 19,109 crore though NIM fell 10 bps at 4.4%.