The bank also posted a 2% increase YoY in net interest income (NII), which rose to Rs 2,336.83 crore in the June quarter from Rs 2,291.98 crore a year ago.
Despite the drop in bottom line, the lender posted its highest-ever other income of Rs 1,113 crore, which was up 21.6% from the year-ago period. Total income for the quarter rose 7.6% year-on-year to Rs 7,799.61 crore.
KVS Manian, Managing Director & CEO of the bank, said the quarter “reaffirmed the strength of our diversified model.” He noted that “even in a typically soft Q1, we saw momentum in key segments like commercial banking, credit cards, and gold loans.”
“Our mid-yielding engines are firing well too,” Manian said. “We delivered a strong operating performance, with improving productivity. Fee income hit a record high, and CASA ratios continued to improve steadily.”
Deposits in Q1
The bank’s total deposits grew 8.03% to Rs 2.87 lakh crore, while net advances increased by 9.24% to Rs 2.41 lakh crore. Within this, retail advances rose 15.6% to Rs 81,047 crore, commercial banking loans jumped 30.3% to Rs 25,028 crore, and corporate loans grew 4.5% to Rs 83,680 crore.
The bank’s CASA (current account and savings account) base expanded 12% YoY to Rs 87,236 crore. Net interest margin for the quarter stood at 2.94%, while annualised earnings per share came in at Rs 14.07.
Assets in Q1
Asset quality remained stable, with gross non-performing assets (NPAs) at 1.91% and net NPAs at 0.48%. Provision coverage ratio (excluding technical write-offs) stood at 74.41%.
Manian said that “while credit costs were elevated this quarter, they were largely driven by slippages in the Agri and MFI portfolios.” He added, “Based on current trends, we expect these slippages to moderate and stabilise going forward, leading to a normalisation in credit costs.”
The lender’s capital adequacy ratio for the June 2025 quarter stood at 16.03%, and net worth increased 12.2% YoY to Rs 33,994 crore. Return on assets (ROA) and return on equity (ROE) for the quarter stood at 1% and 10.3%, respectively.
“With macro tailwinds building and our strategic themes gaining traction, we’re confident of accelerating growth in the second half while staying disciplined on risk and profitability,” Manian said.
