Total advances or loans increased by more than 21% to Rs 1.32 lakh crore. This is better, by 2 percentage points, than the target set by the Reserve Bank of India"s credit growth projection of 19% for FY12.

However, net interest margin fell slighly from 3.44% to 3.28% quarter-on-quarter basis. The bank clarified on this issue said, "The reduction in NIM during Q1FY12 was driven by a slower build up in CASA deposits leading to persistence of higher cost term deposits plus upward revision of rate for savings bank deposits".

Deposits for the company went up by 24% and borrowing figures of the company increased by 13.8%. CASA ratio stood at 40.53% to total deposits as against 40.17% in March quarter. With rising interest rate, CASA is cheap source of funds as compared to longer term deposits. Banks pay 0-4% interest in CASA as asgainst 7-11% for term deposits.

Gross non-performing asset (NPA) too improved to 1.06% versus 1.13% year-on-year. Net NPA stood at 0.31% against 0.35%. However, net NPAs sequentially rose by 5 basis points compared to March quarter"s 0.26%. Provisions came down by 47% to Rs 175.84 crore from Rs 333 crore a year back. Other income increased almost 17% to Rs 1,168 crore from Rs 1,001 crore.

Segment wise revenue showed that corporate banking has seen maximum growth at 64.5% where as the least growth was reported by retail segment with 24.6%.

The bank restructured loans aggregating Rs 107 crore during the quarter. Restructured loans majorly (76.24%) came from large and mid corporates while SME sector forms only 11.80% of restructured assets.

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