Net profit for the quarter stood at Rs 1,440 crore compared to Rs 1,330 crore a year ago.
Net interest margin (NIM), a key profitability ratio, improved 37 basis points to 2.75% in the reporting quarter. Net interest income increased by 25.3% to Rs 6,769 crore.
“We are trying to keep the NIM at around 3%,” chief executive Rajkiran Rai said.
The lender’s operating profit increased by 11.3% to Rs 5,530 crore. The total provision was 12.4% higher at Rs 4,081 crore.
Its asset quality improved, with the gross non-performing asset ratio falling to 11.11% at the end of March from 13.74% a year earlier. The net NPA ratio improved to 3.68% from 4.62%. The solvency ratio stands at 14.52%.
Advances from the bank increased by 9.6% year-on-year to Rs 7.16 lakh crore while deposits increased by 11.75% to Rs 10.3 lakh crore.
“Our goal is to increase advances by 10-12% this year,” Rai said. He said a rate hike of 50 to 100 basis points would not affect demand for long-term credit, although businesses may seek other sources of short-term loans.
The bank has an exposure of Rs 2700 crore to Future Group and Rs 2492 crore to Srei. Rai said the risks are covered by a 58% provision and an 86% provision respectively.
The board of the bank has recommended a dividend of Rs 1.90 per share of Rs 10 each for the last financial year.