The bank posted a much-better-than-expected set of numbers for Q1FY14 and this was reflected in the stock price which yesterday closed almost 4% higher.  A 31% (YoY) rise in net interest income (NII) at Rs.2865 crore helped the bank end the quarter with a 23% rise in net profit at Rs.1409 crore. Other income also rose, it was up 32% at Rs.1761 crore. Advances grew 16% though the growth in deposits was at a much slower pace at 7%.  Net Interest Margin (NIM) came in at 3.86%, up 16 bps (QoQ).  The capital adequacy ratio of the bank was 15.87% while tier I capital ratio was 11.72% as per Basel III norms.

The Bank’s asset quality remains good. Its Gross NPA was at 1.10% v/s 1.06% (YoY) and Net NPA also rose from 0.35% to 0.32%. The Bank held provision coverage of 80% as on 30th June 2013 (as a proportion of Gross NPAs including prudential write-offs). The provision coverage before accumulated write-offs was 89%. The cumulative value of assets restructured till 30th June 2013, stood at Rs.4,211 crore v/s Rs.4368 crore as at 31^st March 2013, constituting 1.87% of gross customer assets. The bank, given its exposure to the troubled sectors – power and infra constituting 13% of total loan at end of FY13, it is a prudent move for the bank to have hiked its provisions against bad loans  from Rs.260 crore to Rs.712 crore (YoY).  During Q1FY14, the Bank added 74 branches and 243 ATMs to its network across the country and at the end of 30th June 2013, had a network of 2,021 domestic branches v/s 1,674 in Q1FY13.