The city-based lender had reported a post tax profit of Rs 675.6 crore in the corresponding October-December period last year.
A heavy influx of deposits into the low-cost current and saving account deposits, whose share rose 3 percentage points in a single quarter to 33 per cent of base, helped increase its net interest margin to 3.5 per cent for the quarter.
Its managing director and chief executive Rana Kapoor exuded confidence that these deposits -- it saw Rs 10,168 crore in cash deposits including Rs 8,068 crore of scrapped notes -- will stick longer and help the bank maintain the high NIMs.
Its advances rose 38 per cent on back of a steady pick up in the mid-corporate segment and the deposits were up 30.5 per cent during the quarter while the credit deposit ratio was 88.5 per cent.
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Kapoor said there was a temporary effect on certain loan lines like micro loans, self help groups and auto following demonetisation, but said that pent-up demand in a majority of the categories is coming back.
Commercial vehicles and construction equipment will take more time to recover, Kapoor said, adding that he expects the negative impact of the note scrapping exercise to wear-off post-April.
Asserting the bank has cornered a 40 per cent market share on the UPI platform, Kapoor termed this as "blips" caused by "one or two banks".
Kapoor said the bank will achieve its target of taking the Casa share to 40 per cent 18 months ahead of the stated timeline of March 2020.
Kapoor, however, was quick to clarify that the bank
The bank's capital adequacy ratio stood at 16.9 per cent as of December 31, 2016 with the core CET-1 at 12.2 per cent, Kapoor said, adding there is no urgent need to raise equity capital even though the shareholder approval for up to USD 1 billion is in place.
Its gross non performing assets ratio increased to 0.85 per cent on a Rs 89 crore slippage, while there was one asset with a Rs 193.5 crore exposure where there was a SDR.
The bank scrip closed 0.06 per cent up at Rs 1,347.15 a piece on the BSE as against a 0.19 per cent gains in the benchmark.