Mumbai: reported a 53 per cent growth in consolidated net profit led by strong loan growth as sales finance, commercial lending, rural business lending and loan against securities rose sharply year on year.
Net profit increased to Rs 1,481 crore in the second quarter ended September 2021 from Rs 965 crore a year ago led by a 22 per cent growth in assets under management to Rs 1.66 lakh crore.
Year-on-year sales finance grew 59 per cent, rural business lending increased 80 per cent, commercial lending rose 50 per cent and loans against securities grew 68 per cent resulting in a 28 per cent growth in net interest income (NII) to Rs 5,335 crore from Rs 4, 162 crore a year earlier.
The company booked 6.33 million new loans during the quarter up from 3.62 million booked a year ago, indicating improvement in consumer sentiment. Fees and commissions also rose 58 per cent to Rs 978 crore from Rs 620 crore a year earlier.
A fall in loan loss provisions also helped the bank. Provisions fell to Rs 1,300 crore from Rs 1,700 crore a year ago.
The company did an accelerated write-off of Rs 355 crore of principal outstanding on account of COVID-19 related stress during the quarter. The company holds an extra provision of Rs 832 crore as of September 2021.
Though total provisions fell year on year the company tripled its provisions for gross NPAs and written-off accounts to Rs 1475 crore from Rs 330 crore a year ago. Gross NPA dropped to 2.45 per cent as of September 2021 from 2.96 per cent a year ago and 1.46 per cent as of 30 June 2021.
The company has a provisioning coverage ratio of 55 per cent on NPAs.