Net profit rose to Rs 1,481 crore in the second quarter ended September 2021, up from Rs 965 crore a year ago, driven by 22% growth in assets under management to Rs 1.66 lakh crore.
Year-on-year sales financing increased 59%, rural business loans increased 80%, commercial loans increased 50% and securities lending increased 68%, resulting in a 28% growth in revenue. Net interest income (NII) at Rs. 5,335 crore from Rs 4,162 crore a year earlier.
The company recorded 6.33 million new loans in the quarter, up from 3.62 million a year ago, indicating improved consumer confidence. Fees and commissions also rose 58% to Rs 978 crore from Rs 620 crore a year earlier.
A drop in loan loss provisions also helped the bank. Supplies fell to Rs 1,300 crore from Rs 1,700 crore a year ago.
The company proceeded with an accelerated write-off of Rs 355 crore of overdue principal due to COVID-19 stress during the quarter. The company holds an additional provision of Rs 832 crore as of September 2021.
Although total provisions have declined year on year, the company has tripled its provisions for gross ANP and written off accounts to Rs 1,475 crore, from Rs 330 crore a year ago. Gross NPA fell to 2.45% in September 2021, from 2.96% a year ago and 1.46% as of June 30, 2021.
The company has a 55 percent provisioning coverage ratio on APMs.