FISCAL 2020 COMPARED TO FISCAL 2019

The following table sets forth certain information with respect to our results of operations for Fiscal 2019 and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2019 Fiscal 2020
Particulars (million) Percentage of total (million) Percentage of total
income income

Income

Interest earned 5,301.07 88.79% 7,666.85 89.76%

Other income 669.22 11.21% 874.53 10.24%

Total 5,970.29 100.00% 8,541.38 100.00%

Expenditure

Interest expended 1,897.33 31.78% 2,757.80 32.29%

Operating expenses 1,907.43 31.95% 2,721.21 31.86%

Provisions and contingencies 1,261.55 21.13% 1,950.39 22.83%

Total 5,066.31 84.86% 7,429.40 86.98%

Profit

Net profit for the year 903.98 15.14% 1,111.98 13.02%
Income

Total income increased by 43.06% from % 5,970.29 million in Fiscal 2019 to = 8,541.38 million in Fiscal 2020 primarily due
to an increase in interest earned due to the reasons discussed below.

Interest Earned

Interest earned increased by 44.63% from % 5,301.07 million in Fiscal 2019 to 2 7,666.85 million in Fiscal 2020, primarily due
to an increase in interest/ discount on advances/ bills by 42.37% from % 4,932.89 million in Fiscal 2019 to 2 7,022.74 million
in Fiscal 2020 on account of an increase in advances. Gross Loan Portfolio increased by 24.93% from & 29,704.42 million in
Fiscal 2019 to % 37,108.42 million in Fiscal 2020 primarily on account of an increase in inclusive finance (JLGs) portfolio by
16.36% from % 24,191.24 million in Fiscal 2019 to = 28,147.75 million in Fiscal 2020, other loan products from = 131.60
million in Fiscal 2019 to = 572.77 million in Fiscal 2020 and increase in the number of Banking Outlets. Income on investments
also increased by 56.72% from % 337.23 million in Fiscal 2019 to = 528.51 million in Fiscal 2020, 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. Interest on balances with RBI and other inter-bank funds increased significantly from % 29.26 million in
Fiscal 2019 to = 113.26 million in Fiscal 2020, due to increase in lending in inter-bank money market instruments, such as, call/
notice/ term money and reverse repo, including under LAF.

Other Income

Other income increased by 30.68% from % 669.22 million in Fiscal 2019 to = 874.53 million in Fiscal 2020, 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 9.85% from % 448.13 million in Fiscal 2019 to = 492.28 million in Fiscal
2020 on account of relatively higher processing fee income due to higher disbursements in the Fiscal 2020 compared to Fiscal
2019. Further, profit on sale of investments (net) increased by 78.58% from = 39.78 million in Fiscal 2019 to = 71.04 million
in Fiscal 2020 due to relatively higher trading activities on account of declining Government security yields and higher
investment in liquid mutual funds compared to Fiscal 2019. Miscellaneous income, primarily comprising of income from sale
of PSLC and recovery from written-off accounts, increased by 71.62% from & 181.23 million in Fiscal 2019 to = 311.02 million
in Fiscal 2020. Income from sale of PSLC increased by 65.48% from 2 168.96 million in Fiscal 2019 to = 279.60 million in
Fiscal 2020 due to increased sale of PSL certificates, as a result of higher PSL achievement in Fiscal 2020, and recovery from
written off accounts increased from % 10.66 million in Fiscal 2019 to = 28.98 million in Fiscal 2020.

The components of other income for Fiscal 2019 and Fiscal 2020 are as follows:

 

 

 

 

 

 

 

 

 

 

Fiscal
Particulars 2019 2020
@iillion)
Commission, exchange and brokerage 448.13 492.28
Profit on sale of investments (net) 39.78 71.04
Profit/(Loss) on sale of fixed assets (net) 0.08 0.19
Miscellaneous income 181.23 311.02
Total 669.22 874.53

 

 

 

321
