But a rise in bad loans continue to remain a major concern.
The state-owned bank that has exposure to debt-laden firms such as Kingfisher Airlines, Air India and Deccan Chronicle Holdings, said bad loans rose to 5.15% of its loan book till September end from 4.19% a year earlier. Shares of the bank closed at Rs. 2,156, down 4%, on the Bombay Stock Exchange on Friday, disappointed by the rise in bad loans.
Provisions for bad loans in the quarter fell by 37% to Rs. 1,837 crore as the bank had made provisions for bad loans in the previous year in anticipation of rise in bad loans. Advances also grew by 18% to Rs. 956,000 crore as of September 2012 from Rs. 810,612 crore as of September 2011.