The bank’s operating profit stood 2.3% higher at Rs 4837 crore against Rs 4729 crore. Net interest income rose by about 6% at Rs 6551 crore. Other income rose by about 3% at Rs 2487 crore. Total provisions were lower at Rs 739 crore as compared with Rs 1099 crore.
The net interest margin for the quarter stood at 3.23% against 3.39% in the year ago period.
“The pressure on NIM will continue in the third quarter when a majority of the repricing of the MCLR-linked loans takes place. There will be repricing of deposits too but repricing of loans will outweigh that,” managing director Binod Kumar told ET.
The bank’s advance grew 12.7% year-on-year to Rs 6.20 lakh crore while total deposits expanded by 12% to Rs 7.77 lakh crore. The low cost current and savings account ratio to total deposits fell to 38.9% at the end of September from 40.5% a year back refelcting the challenge banks are facing in low-cost deposit mobilisation.
Its gross non-performing assets ratio fell to 2.6% at the end of the reporting cycle from 3.48% a year back. Net NPA stood at 0.16% against 0.27%.The bank’s share price fell 0.47% to Rs 771.65 on BSE.