Net interest income (NII) for the quarter jumped 32 per cent YoY to Rs 1,850 crore, the private lender said in a BSE filing.
Net Interest Margin (NIM) for the quarter came in at 2.4 per cent, up nearly 30 basis points YoY.
The bank said its non-interest income for the quarter came in at Rs 781 crore. Adjusted for unrealised and realised gain on investments, the non-interest income climbed 35 per cent on a year-on-year basis.
The bank made provisions worth Rs 175 crore for the quarter, which were down 62 per cent YoY and 36 per cent sequentially, aided by lower slippages.
Slippages stood at Rs 1,072 crore for the quarter compared with Rs 2,233 crore in the same quarter last year.
Asset quality improved as gross non-performing assets as percentage of advances fell to 13.4 per cent for the quarter against 13.9 per cent in March and 15.6 per cent in the year-ago quarter.
The private lender said it has has come out of the reconstruction scheme with formation of alternate board with effect from July 15, pursuant to shareholders’ approval. The new board has recommended appointment of Prashant Kumar as MD & CEO for three years, subject to approval of the RBI and shareholders, the bank said.
said it has signed a binding term sheet with partner JC Flowers to form an ARC with the objective of sale of an identified pool of nearly Rs 48,000 crore of stressed assets.
MD & CEO Prashant Kumar said it was a stable quarter that saw fresh disbursements momentum, improvment in granularisation of assets, steady profitability and improved asset quality metrics.
“The balance sheet is now resilient to navigate the volatile interest rate environment, and the bank remains on track to achieve the FY23 as well as medium term guidance and objectives. More importantly, during the quarter, the Bank has successfully come out of the Reconstruction Scheme with formation of the alternate Board,” he said.
Kumar said term sheet has been signed for sale of identified pool of stressed assets to the ARC and the successful sale of stressed assets will be the largest such deal in India and a significant milestone in the bank’s new journey.