The market was disappointed with the Q3FY16 performance of this Hinduja owned bank. Though on profitability terms, it exceeded most expectations, the higher provisioning and taxation caused anxiety. Net Profit for the quarter was Rs. 581 crore, up 30% (YoY). Net Interest Income (NII) at Rs.1,173 crore grew 36% while non NII rose 29% at Rs.839 crore. Net Interest Margin for the current quarter was at 3.91% as against 3.67 % in the Q3 FY15  and 3.88% sequentially. In terms of business, advances rose 29% while deposits were up 25%. The good news here is that its 9MFY16 net profit at Rs.1667 crore is already 93% of FY15 net profit; with one more quarter to go clearly it will end FY16 on a much better note, at least on profitability terms.

Provisions were at Rs.177 crore – up by a huge 81% (YoY) and up 12% (QoQ). Tax outgo for the quarter came in at Rs.303 crore, up 32% (YoY).

Coming to asset quality, it was stable. Gross NPA for the quarter was up from 0.77% to 0.82% (QoQ) and Net NPA rose from 0.31% to 0.33%. RoA also remained stable at 1.92 v/s 1.93% (QoQ