Though the Bank has shown an improvement in profitability for Q4FY16, its asset quality dropped along with an increase in provisioning. Its net profit for the quarter came in at Rs.702 crore, up 27% (YoY) and this was on the back of strong growth in Net Interest Income (NII) – it was up 27% at Rs.1241 crore. NIM was stable at 3.4%. Other income growth helped profitability too – it was up 36% at Rs.803 crore. Advances for the quarter rose 30% to Rs.98,210 crore, while deposits rose 22% to Rs.1,11,719 crore.

In terms of asset quality, the news was not good. Gross NPA for the quarter rose to 0.76% from 0.66% (QoQ) while Net NPA also went up marginally from 0.22% to 0.29%. Provisions jumped 47% (YoY) to Rs.186 crore in the quarter. Provision coverage ratio though came down from 66.5% to 62%. The Bank stated that there was no strategic debt restructuring during the quarter.