The bank’s operating profit also rose, albeit by a modest 8 per cent, to Rs 5,483 crore against Rs 5,084 crore. A 64 per cent fall in treasury income at Rs 499 crore dented the rise in operating profit.
Net interest margin – a key profitability measure – was at 3.13 per cent for the December quarter against 2.77 per cent over the same period last year. Net interest income (NII) — the difference between interest earned and interest expended — rose 14.4 per cent to Rs 8,552 crore.
Other income, which includes fee and treasury earnings, was 13.5 per cent lower at Rs 2,519 crore.
Provisions and contingencies fell 27 per cent year-on-year to Rs 2,507 crore against Rs 3450 crore.
The lender’s asset quality improved with gross non-performing assets (NPAs) falling to 7.25 per cent at the end of December against 8.48 percent a year prior to that. Net NPA was at 2.25 per cent against 2.39 per cent.
The bank saw fresh slippages of Rs 2,830 crore in the December quarter while it recovered Rs 2,032 crore and upgraded Rs 1,272 crore from NPA accounts. It wrote off loans amounting to Rs 3,694 crore.
Its gross advances rose 3.56 per cent year-on-year to Rs 7.72 lakh crore.