Profitability & Capital Adequacy Presentation
The Bank has developed unique capabilities for Risk Management
Cash Flow Assessment
(Bank statements, GST filings, Bureau Data
etc.)
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Debit Instruction to Bank
Asset Quality
Section 8: Risk Management & Asset Quality
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The Bank lends on the basis of cash flow assessment -
A. Where the cash flow of the borrower is assessed
B. This is coupled with right to debit the bank account of the
customer for repayment of EMI.
Our experience is that this combination of A+B put together practically
works as an escrow.
This is a key reason for the bank portfolio continues to do well through
the credit cycles.
The credit model has been tested for over 12 years.
During this time, the asset quality of the credit book remained pristine
with GNPA at less than 2% and NNPA at less than 1% (except the COVID
impact)
Post COVID impact, the GNPA and NNPA in the retail, rural and SME
credit has improved to 1.53% and 0.52% respectively as of September
30, 2023.
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