Shares fell 1.8% to ₹835 on the BSE, after the bank reported Q2 earnings that beat consensus. The bank posted a net profit of ₹1,242 crore, reversing a ₹437 crore loss a year earlier and exceeding the ₹1,066 crore consensus.
Net interest income climbed 3.6% YoY to ₹4,569 crore, still shy of the ₹4,710 crore consensus. Operating profit surged 40.4% to ₹2,875 crore, beating the ₹2,687 crore estimate and marking the highest margin since Q4 FY25.
Asset quality improved sharply: gross NPA ratio fell to 2.73% from 3.25%, while net NPA slipped to 0.83% from 0.95%. Provision coverage ratio stood at 70.19%, down from 78.57% YoY, indicating tighter provisioning.
Cost of funds eased to 5.11% from 5.43% a year earlier, while yield on assets slipped to 8.35% from 8.75%. Operating expenses fell to ₹3,943 crore from ₹4,013 crore, tightening the expense base.
Deposits grew 10% YoY to ₹4,28,832 crore, and net advances expanded 11% to ₹3,63,104 crore, showcasing strong credit growth. The bank’s Tier‑1 capital ratio remained solid at 15.55%.
CEO Rajiv Anand said the bank is “building momentum across retail and liability franchise” and expects steady growth in net advances and deposit capture in the next quarter, despite a challenging global backdrop. Investors note the bank’s guidance points to continued expansion in the coming quarter.