The profit stood at Rs 190.4 crore in the fourth quarter last fiscal.
Its operating profit for the quarter stood 27% higher year-on-year at Rs 220 crore agaist Rs 173 crore earlier, buoyed by a 42% rise in other income at Rs 245 crore. Its net interest income rose by a modest 5% at Rs 379 crore.
The Fairfax-backed bank’s net interest margin fell to 3.54% for the three-month period as compared with 4.36% in the year ago period.
“I believe the NIM has bottomed out. There could be another rate cut by the Reserve Bank of India, but NIM is unlikely to go below 3.5%,” bank managing director and chief executiv officer Pralay Mondal told ET.
The bank’s provision to cover bad loans rose 179% at Rs 57 crore in sync with a rise in gross non-performing assets ratio to 1.84% at the end of June from 1.69% a year back. Net NPA stood at 0.66% against 0.68% earlier. It saw higher slippges in the June quarter at Rs 136 crore against Rs 103 crore earlier.”Though the elevated costs primarily driven by technology implementation and slightly higher slippages put some pressure on the bottom line, we are expecting better numbers in the next two quarters,” Mondal said.Its net advances grew by 31% year-on-year to Rs 24,844 crore while total deposits rose 20% to Rs 35,935 crore.