A higher net interest income (NII), good fee income and lower provisioning against bad loans helped the third largest private sector bank post a good set of numbers for Q3FY13. NII was up 17% on a YoY at Rs. 2,495 crore. NIM was at 3.57% v/s 3.46% in Q2FY13. Fee income was up 15% at Rs.1,4052 crore. The main business segments driving fee growth during the quarter were Retail Banking fees, which grew 35% YoY followed by SME fees, which grew 34% YoY. Treasury fees grew 18%.

Provisions and contingencies declined 8% at Rs.387 crore as against Rs.422 crore on YoY. It ended the quarter with a net profit at Rs.1347 crore, up 22%. The bank has kept it asset quality protected. The Bank held provision coverage of 81% at end of Q3FY13. Its net NPA dropped marginally to 0.33% of net outstanding loans, down from 0.39% on YoY. Gross NPA was unchanged at 1.1%. It restructured assets to the tune of Rs.368 crore. Deposits during the quarter rose 17% YoY and the loan book rose 21%, which is above the industry growth rate of 16%. Sequentially, Capital adequacy ratio is up 74 bps at 13.73%. CASA was at 40% compared to 41% (QoQ). During Q3FY13, the Bank added 46 branches and its total branches are now at 1,787.