Apart from the 10% (YoY) rise in net profit for Q1Fy16 at Rs.3692 crore, there was nothing else to cheer; in fact everything else was down! The stock price tumbled down yesterday mainly on the further  fall in the asset quality. Gross NPA rose 4 bps (QoQ) to 4.29% and net NPA rose 12 bps to 2.24%. Also during the quarter, slippages, which are fresh accretion of NPAs, rose by a huge 53% (QoQ) at Rs.7318 crore. Recoveries came in lower, at Rs.1209 crore v/s Rs.4485 crore in Q4, a fall of 73%. At the same time, restructuring rose 31% at Rs.3936 crore. 

And in terms of profitability, apart from the 10% rise in net profit,  NII rose 4% at Rs.13,732 crore but the market was disappointed as it came in much lower than estimates. NIM fell to 3.29% from 3.54% (YoY) and this was on account of 30 bps reduction in base rate and subdued growth of 6% in advances. Fee income jumped 13% and that helped boost the non-interest income to Rs.5088 crore, up 20%.  Provisions were down 39% sequentially at Rs.4000 crore. Provision coverage was at 69.49%.