Its key subsidiaries also saw growth year-on-year as the economy continued to recover while higher levels of savings also went into financial products like equities, insurance and mutual funds.
Shares of the company closed down 1.87 per cent to Rs 1,797 on the BSE.
Here are key takeaways from the earnings:
Profit growth steady
The bank said profits for Q3 increased to Rs 1,854 crore from Rs 1,596 crore in the same quarter last year, up 16 per cent. Its pre-tax profit was Rs 2,484 crore, up 28 per cent from Rs 1,944 crore in Q3FY20.
Operating profit was Rs 3,083 crore, up 29 per cent from Rs 2,388 crore.
The company said the profit figure was affected by higher provisions for taxes this year. In the same quarter last year, the provision for tax was lower due to some favourable tax orders.
Margin falls 18bps
Net Interest Income (NII) increased to Rs 4,007 crore, from Rs 3,430 crore last year, up 17 per cent. Net Interest Margin (NIM) for Q3FY21 was at 4.51 per cent, down 18 bps from the same quarter last year. .
Bad loans nearly double
The bank said, ignoring the Supreme Court freeze on declaring bad loans, net non-performing assets of the lender rose to 1.24 per cent from 0.74 per cent in the previous quarter. Gross NPA was pegged at 3.27 per cent against 2.70 per cent. The bank has, however, made provision for such advances including towards interest accrued, but not collected for the entire period with moratorium, it said.
Deposits grow 29%
Average savings deposits grew by 29 per cent to Rs 1,07,363 crore for the first nine months for this fiscal compared to Rs 83,049 crore in the same period last year. Average current account deposits grew by 13 per cent to Rs 37,533 crore compared to Rs 33,258 crore.
Loans come down marginally
Advances as on December 31, 2020 were at Rs 2,14,103 crore against Rs 2,04,845 crore as on September 30, 2020 and Rs 2,16,774 crore as on December 31, 2019. Customer assets, which includes advances and credit substitutes, were Rs 2,28,809 crore, marginally more than last year.