Gross NPLs finally under control. This is the first time in last five years that gross NPLs have shown a declining trend, albeit marginal. It indicates that fresh accretion to NPLs at the gross level has been contained. The same is also reflected in the improved asset quality of the institution. Retail business attains critical mass.
Environmental conditions limit growth.
Depressed capital markets, volatile interest rate and forex regime during the year affected the company's treasury and capital market operations as compared to FY00. Given the sluggish state of the economy and failure of infrastructure projects to take off, the company's core business of project financing is unlikely to show strong growth in the coming fiscal. Fee based income shows strong growth. The institution has been trying to grow its fee based income through value added services to enhance its relationships with clients and also to reduce its dependence on fund based income. Increasingly fee based income would form a higher percentage of the institution's net income from operations.