Private sector lender reported a 30 per cent year-on-year YoY jump in net profit in the July-September quarter Q 2 FY 22, aided by robust net interest income NII and other income as well as lower provisions. It posted a net profit of Rs 5,511 crore in the reporting period, beating Street estimates, as against Rs 4,251 crore in the same period last financial year.
Bloomberg had estimated a net profit of Rs 5,441 crore for the quarter.
NII of the lender rose 25 per cent to Rs 11,690 crore in the same period and non-interest income was up 26 per cent to Rs 4,400. Net interest margin NIM, a measure of profitability, stood at 4 per cent as against 3.89 per cent in Q 2 FY 21 and 3.57 per cent in Q 1 FY 22.
The Bank made net Covid - 19 related provision of Rs 4,750 crore in FY 21 and held aggregate Covid-related provision of Rs 7,475 crore at 31 March 2021. Donng H 1 FY 22, the bank held Covid-related provision of Rs 1,050 and wrote-back Covid-related provision of Rs 6,425. 00 crore at 30 September 2021.
Asset quality also improved during the quarter with gross NPA additions declining to Rs 5,578 crore in Q 2 FY 22 from Rs 7,231 crore in Q 1 FY 22. The gross NPA ratio of the bank stood at 4.82 per cent in the reporting as against 5.15 per cent in the preceding quarter. Net NPAs declined to below 1 per cent 0.99 per cent in the September quarter from 1.16 per cent in the June quarter. As of September quarter, the total assets under various resolution schemes is Rs 9,684 crore or 1.3 per cent of total advances as against Rs 4,864 crore at the end of June quarter. The bank has restructured loans worth Rs 4,158 crore under the first Covid restructuring programme and it had restructured Rs 3,737 crore in the second round of Covid restructuring, of which Rs 61 crore has slipped into the NPA category.
Total advances of the lender increased 17 per cent YoY, a 23 quarter high, and 4 per cent sequentially to Rs 7.64 trillion at the end of the September quarter and domestic advances grew by 19 per cent YoY. While the retail loan portfolio grew 20 per cent YoY and 5 per cent sequentially. In the same period, the deposit portfolio grew 17 per cent YoY and 6 per cent sequentially to Rs 9.77 trillion.