The net profit for the quarter stood at Rs 1,440 crore against Rs 1,330 crore in the year-ago period.
Net interest margin (NIM), a key profitability ratio, improved 37 basis points to 2.75% in the reporting quarter. Net interest income rose 25.3% at Rs 6,769 crore.
“We endeavour to maintain NIM at around 3%,” managing director Rajkiran Rai said.
The lender’s operating profit rose 11.3% to Rs 5,530 crore. Total provision was 12.4% higher at Rs 4,081 crore.
Its asset quality improved with the gross non-performing assets ratio falling to 11.11% at the end of March as compared with 13.74% a year back. The net NPA ratio improved to 3.68% against 4.62%. The capital adequacy ratio stood at 14.52%.
The bank’s advances grew 9.6% year-on-year to Rs 7.16 lakh crore while deposits rose 11.75% to Rs 10.3 lakh crore.
“Our guidance is to grow advances by 10-12% this year,” Rai said. He said that a 50-100 basis point rise in rates would not impact long-term credit demand although corporates may look for alternate sources for short-term loans.
The bank has Rs 2700 crore exposure to the Future Group and Rs 2492 crore exposure to Srei. Rai said the risks are covered by 58% provision and 86% provision respectively.
The bank board has recommended a dividend of Rs 1.90 per equity share of Rs 10 each for the last fiscal.