 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2018 Fiscal 2019
Particulars (million) Percentage of total (%million) Percentage of total
income income
Income
Interest earned 2,868.82 88.29% 5,301.07 88.79%
Other income 380.44 11.71% 669.22 11.21%
Total 3,249.26 100.00% 5,970.29 100.00%
Expenditure
Interest expended 1,210.52 37.26% 1,897.33 31.78%
Operating expenses 1,313.77 40.43% 1,907.43, 31.95%
Provisions and contingencies 610.05 18.78% 1,261.55 21.13%
Total 3,134.34 96.46% 5,066.31 84.86%
Profit
Net profit for the year 114.92 3.54% 903.98 15.14%
Income

Total income increased by 83.74% from 2 3,249.26 million in Fiscal 2018 to = 5,970.29 million in Fiscal 2019 primarily due
to an increase in interest earned due to the reasons discussed below.

Interest Earned

Interest earned increased by 84.78% from 2,868.82 million in Fiscal 2018 to = 5,301.07 million in Fiscal 2019, primarily due
to an increase in interest/ discount on advances/ bills by 91.17% from % 2,580.43 million in Fiscal 2018 to = 4,932.89 million
in Fiscal 2019 on account of increase in advances. Gross Loan Portfolio increased by 72.92% from % 17,177.83 million in Fiscal
2018 to = 29,704.42 million in Fiscal 2019 primarily on account of an increase in inclusive finance (JLGs) portfolio by 56.67%
from 2 15,441.32 million in Fiscal 2018 to = 24,191.24 million in Fiscal 2019 and increase in the number of branches. Income
on investments also increased by 50.68% from % 223.80 million in Fiscal 2018 to % 337.23 million in Fiscal 2019, as a result
of increase in investment to meet SLR requirements and surplus liquidity maintained in SLR and non-SLR securities as part of
prudent risk management strategy. This was partially offset by a decrease in interest on balances with RBI and other inter-bank
funds, which decreased by 53.15% from % 62.45 million in Fiscal 2018 to = 29.26 million in Fiscal 2019, primarily due to
maturity of the fixed deposits placed with banks, including security deposits for grandfathered borrowings, which refer to the
borrowings undertaken prior to conversion to an SFB.

Other Income

Other income increased by 75.91% from 2 380.44 million in Fiscal 2018 to = 669.22 million in Fiscal 2019, primarily due to
increase in commission, exchange and brokerage income, profit on sale of investments (net) and miscellaneous income.
Commission, exchange and brokerage increased by 71.95% from % 260.61 million in Fiscal 2018 to = 448.13 million in Fiscal
2019 on account of increase in processing fees due to higher disbursements. Further, profit on sale of investments (net) increased
by 59.12% from % 25.00 million in Fiscal 2018 to % 39.78 million in Fiscal 2019 due to favourable yield movement in
Government securities during the last quarter of Fiscal 2019. Miscellaneous income increased by 91.53% from % 94.62 million
in Fiscal 2018 to = 181.23 million in Fiscal 2019 due to increase in income from sale of PSLC, which increased by 80.01%
from = 93.86 million in Fiscal 2018 to = 168.96 million in Fiscal 2019 on account of increase in sale of PSL certificates, as a
result of higher PSL achievement in Fiscal 2019.

The components of other income for Fiscal 2018 and Fiscal 2019, are as follows:

 

 

 

 

 

 

 

 

Fiscal
Particulars 2018 2019
@iillion)
Commission, exchange and brokerage 260.61 448.13
Profit on sale of investments (net) 25.00 30.78
Profit/(Loss) on sale of fixed assets (net) 0.21 0.08
Miscellaneous income 94.62 181.23
Total 380.44 669.22

 

 

 

 

 

Recurring income includes (i) commission, exchange and brokerage; (ii) profit on sale of investments (net); (iii) profit/ (loss)
on sale of fixed assets (net); and (iv) miscellaneous income.

Expenditure

Total expenditure increased by 61.64% from 23,134.34 million in Fiscal 2018 to = 5,066.31 million in Fiscal 2019 on account
of an increase in interest expensed, operating expenses and provisions and contingencies.

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