Net interest income increased 26% year-on-year to ₹1,475 crore, while net interest margin was 5.54%, higher than 5.02% in July-September last year.
During the quarter ended September 30, the bank received income tax orders related to matters under appeal, which resulted in a tax provision write-back for previous years of ₹222.9 crore (pre-tax of ₹297.8 crore). The bank utilised this write-back to create contingent reserves of 100 basis points on credit card and microfinance advances, of ₹252 crore. A basis point is a hundredth of a percentage point.
While asset quality improved, with gross non-performing assets (GNPA) falling to 3.12% from 3.80% and net NPA to 0.76% from 1.26%, the bank, in order to enhance provisioning practices for credit cards, modified its existing policy.