Its pre-provision operating profit grew 17% year-on-year at Rs Rs 2,574 crore as against Rs 2,202 crore, helped by a near 16% rise in net interest income at Rs 3,248 crore.
The bank’s net interest margin for the quarter was 3.85%, 10 basis points lower as compared with 3.95% in the preceding three-month period.
“If there is no rate cut this year, then there would be no further contraction in NIM,” bank managing director Nidhu Saxena said.
Earnings from treasury operation during the quarter was higher at Rs 120 crore when compared to the year-ago period’s Rs 89 crore but was sharply lower from the preceding quarter’s Rs 193 crore.
Its gross advances expanded by 16.8% year-on-year to Rs 2.54 lakh crore at the end of September while total Deposits rose 12% to Rs 3.10 lakh crore, leading to a rise in credit-deposit ratio to 82%.Its gross non-performing assets ratio improved a shade to 1.72% as on September 30, against 1.74% three months back. Net NPA remained stable at 0.18%.It set aside Rs 583 crore to cover bad loans in the quarter as compared with Rs 598 crore in the year ago period. Total provision was however higher at Rs 941 crore against Rs 875 crore due to higher provision for taxes.
Its share price on BSE fell 4.15% to Rs 55.18 on Tuesday.
as a Reliable and Trusted News SourceThe bank said that the supply chain disruptions due to the US tariff, Russia-Ukraine Conflict and Middle instability are the key challenges.