The net profit was at Rs 116 crore for the September quarter as against Rs 41 crore in the year-ago period.
A lower provisions of Rs 90 crore as compared with Rs 142 crore in the same period last year, which is in sync with improvement in asset quality, boosted the profit number.
“Quality of portfolio remains a comfort with reducing credit cost,” managing director PN Vasudevan said. The bank’s net interest margin was at a robust 9% while net interest income rose 26% to Rs Rs 610 crore in the quarter against Rs 484 crore in the comparable quarter last year.
Operating profit rose 22% at Rs 242 crore.
The gross non-performing assets ratio was at 3.82% at the end of September as compared with 3.95% three months prior to that. Net NPA stood at 1.93% against 2.07%.
The bank’s advances grew 20% year on year to Rs 22,779 crore.
“Demand for credit continues to remain strong, especially in the informal sector. The 20% year-on-year growth in advances for the first half is expected to improve further in the seasonally active second half,” Vasudevan said.
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