In the October December quarter of FY 22, NII reported a 53 per cent increase in net profit compared to Rs 378 crore in the same quarter of the previous financial year, despite the fact that interest earned minus interest was up over 30 per cent year-on-year YoY to Rs 2,383 crore. Non-interest income was down 20 per cent YoY to Rs 1,148 crore, but it posted a sequential growth of 17 per cent. The net interest margin, a measure of profitability of banks, was improved by 101 basis points bps to 3.88 per cent at the end of December.
The lender's provision was down 7.62 per cent on the YoY basis to Rs 801.81 crore, but it was up 40 per cent on a sequential basis. The bank has provisions for Covid to the tune of Rs 863 crore as of December quarter.
The asset quality has improved both on a YoY and a sequential basis. Net NPAs, on the other hand, stood at 1.7 per cent. The provision coverage ratio of the lender was very high, at 97.10 per cent.
The lender revealed that it has restructured loans worth 1,941 rupees. As per RBI Covid resolution framework, 51 crore were provided by Reserve Bank of India. Under various regulatory schemes, the bank has restructured MSME loans worth 789.17 crore.
The loan book of the lender increased 6.23 per cent sequentially to Rs 1.67 trillion, while the growth was around 4.8 per cent on a YoY basis. The deposit book decreased marginally on a YoY basis and sequentially to Rs 2.22 trillion.
Shares of the lender are trading 1.48 per cent less than previous days close to Rs 49.80 on the BSE.