Net profit stood at Rs 7,071 crore for the three months ended March 31, compared with Rs 7,118 crore a year earlier. Provisions rose 139% year-on-year to Rs 3,522 crore from Rs 1,359 crore.
The total provisions included a one-off additional provision of Rs 2,001 crore as a buffer against a pool of accounts that may face stress due to geopolitical uncertainties, the bank said.
The bank also received a tax write-back of Rs 580 crore.
Net interest margin declined to 3.62% from 3.97% a year earlier.
“The one-time provision is prudent and precautionary in nature during periods of elevated geopolitical uncertainty and does not reflect any deterioration in asset quality or adverse credit trends in the bank’s loan or investment portfolio,” managing director Amitabh Chaudhry said.
Operating profit fell 7% year-on-year to Rs 10,013 crore from Rs 10,752 crore, hurt by a Rs 606 crore trading loss and higher operating expenses, which failed to offset the 5% rise in net interest income.For FY26, net profit declined to Rs 24,457 crore from Rs 26,374 crore in the previous fiscal.
Advances grew 19% year-on-year to Rs 12.34 lakh crore at the end of March, with retail loans contributing 55%. Secured advances accounted for about 73%.
Asset quality improved, with gross non-performing assets ratio falling to 1.23% from 1.40% three months earlier. Net NPA ratio declined to 0.37% from 0.42%.
Gross slippages were Rs 4,709 crore, compared with Rs 6,007 crore in the previous quarter and Rs 4,805 crore a year earlier. The bank wrote off NPAs of Rs 3,096 crore during the quarter.
Deposits grew 14% year-on-year to Rs 13.36 lakh crore.
“We are working very hard to bring down the gap between credit and deposit growth,” Chaudhry said.
The board recommended a final dividend of Rs 1 per equity share of face value Rs 2, implying a 50% payout for the fiscal.
It also approved raising up to Rs 20,000 crore through qualified institutional placement, preferential allotment or American Depository Receipts or Global Depository Receipts. Chief financial officer Puneet Sharma however said the bank has no plans to raise equity in the current financial year.