Net profit during the quarter beat analysts’ expectations of Rs. 2,240 crore.
“We believe our loan growth will 17-18%, 2-3 percentage points higher than the industry,” CEO Chanda Kochhar said.
Net interest income (the difference between interest earned and interest paid) grew 20% to Rs. 3,820 crore. Non-interest income rose 32% to Rs. 2,484 crore.
The lender also witnessed deterioration in asset quality, as net non-performing asset (NPA) ratio stood at 0.69% on June 30, 2013 compared with 0.64% on March 31, 2013. Provisioning against bad loans rose to Rs. 593 crore during the quarter, against Rs. 466 crore a year ago.
“Despite weakness in operating environment, asset quality is in line with expectations,” Kochhar said.