The net profit was Rs 151.5 crore in the year ago period.
The bank’s other income, which includes earnings from third-party businesses and treasury operations, nearly doubled at Rs 382 crore against Rs 197 crore earlier. The net interest income however shrunk 4% at Rs 371 crore on account of higher interest outgo.
Its net interest margin for the quarter fell to 3.75% as compared with 5.04% in the year-ago period.
“We were ready to sacrifice margin for growth. The margin has bottomed out,” managing director Pralay Mondal told ET.
The bank’s operating profit for the quarter rose 39% year-on-year at Rs 317 crore against Rs 228 crore in the year-ago period.Its advances grew by 29% year-on-year to Rs 31507 crore at the end of March 31, supported by a 35% expansion in gold loans. Gold loans account for 44% of the portfolio. Unsecured loans contribute merely 3.4% of the total portfolio.Its total deposit mobilisation grew 24% year-on-year to 36,861 crore with the current and savings account ratio being at 24%.
“For the next six months, we will be focusing on a complete technology transformation in the bank. Then we can run the bank as a full-service franchise. We are keenly waiting for this.” Mondal said.
