Indias largest private sector lender saw its net profit for the quarter ended June 30 rise 19% on a year-on-year basis on higher net interest income and lower provisions.
Net profit for the bank rose to Rs 9,196 crore, compared with Rs 7,730 crore a year ago. Analysts polled by Bloomberg estimated a net profit of Rs 8,197 crore for the quarter.
Net interest income, or core income, stood at Rs 19,481 crore, up 14.5% from last year. The bank’s core net interest margin was at 4% of total assets.
Other income rose a marginal 1.6% year-on-year and stood at Rs 6,388 crore. The low growth in other income was on account of a loss on sale and revaluation of investments of Rs 1,312 crore, according to the bank’s press release. Other income, excluding trading and mark-to-market losses, grew 35.4% over a year ago, the bank said.
Asset quality for the bank was stable with its gross non-performing asset ratio falling to 1.28% as of June 30, compared with 1.17% as of March 31. Similarly, the net NPA ratio was at 1.28% as of June 30, compared to 1.17% a quarter ago.
Provisions during the quarter stood at Rs 3,188 crore, down 34% from a year ago.
The bank said it holds floating provisions of Rs 1,451 crore and contingent provisions of Rs 9,630 crore. Total provisions were 170% of gross non performing assets.
Total advances at the end of the first quarter stood at Rs 13.95 lakh crore, up 21.6% on a year-on-year basis.
Total deposits for the bank rose 19.2% year-on-year and stood at Rs 16.05 lakh crore. CASA deposits rose 20.1%, taking the share of low cost deposits to 45.8%.