Page 128 - Demo

One of the strategic imperatives of the Bank is to grow the share of CASA in its total deposits base. The Bank has increased its share of Retail and Institutional deposits over the corresponding period in the previous year. The Bank has dedicated teams within the liabilities side focused on mobilization of deposits from each client type.
cash, unencumbered excess SLR eligible investments, a portion of statutory SLR as allowed under the guidelines, cash balance with RBI in excess of statutory CRR, and high rated corporate bonds issued by entities other than financial institutions.
The LCR position, computed on the basis of daily average of three months, was comfortable and significantly in excess of the mandatory minimum i.e. 90% as applicable w.e.f. 1st January 2020.
casa and retail deposit trend (%)
37.0
10.8
Mar'19
43.0
10.4
June'19
42.0 43.0
11.9 11.6
Sep'19 Dec'19
44.0
13.5
Mar'20
A high Quality Liquid assets
Level 1 Assets
Level 2 A Assets
Level 2 B Assets
b total stock of hQLas
C Cash outflows
D Cash Inflows
E net Cash-flow
F 25% of total Cash outflow
g higher of e or f
Liquidity coverage ratio
(` in Lakhs) Adjusted Baseline
Scenario
232,904
-
-
232,904
145,854
54,130
91,724
36,464
91,724 253.92%
Liquidity coverage ratio
CASA to total Deposits
Retail to total Deposits
The Bank adheres to RBI guidelines relating to the Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and the LCR Disclosure Standards pursuant to the Basel III Framework on Liquidity Standards that are applicable to Small Finance Banks in India. LCR aims to ensure that a bank maintains an adequate level of unencumbered High Quality Liquid Assets (HQLAs) to meet its liquidity needs, convertible into cash under significantly severe liquidity stress scenario lasting for 30 days horizon period.
The Bank computes LCR in Indian rupees, the only currency it deals with. HQLA of the Bank consists of
12.1.3 cost of funding
The high LCR was on account of high average cash position of `17,541 Lakhs and excess SLR securities. The excess SLR securities were acquired in order to facilitate the Bank in borrowing through Variable rate Repo (via CROMS) and TREPS and therefore in capitalising on falling interest rate scenario. Better cash and SLR management will optimize the LCR.
net stable funding ratio (nsfr): RBI had issued its final guidelines for nSFR27 which will come into effect from April 1, 2020. However, the same has been extended to October 1, 2020 in the backdrop of the COVID-19 pandemic.
Cost of Funds of the Bank has shown a declining trend during the year. COF was 8.51% at the beginning month of the year and reduced to 7.78% at the end of the year. The details are as below:
cost of funds (%)
8.57
8.53
8.51
8.48
Apr May Jun
Jul Aug Sep Oct Nov Dec Jan
7.98
7.78
Feb Mar
COF
27Refer RBI guidelines issued vide circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018
8.31 8.31
8.12
8.07
8.05
7.90
126 | AnnuAl RepoRt 2019-20