"The first six months of the bank’s operating income exceeded the same period the previous year by 22%. The improvement in the operating income is mainly on account of growth of net interest income which showed an improvement of 18% and non fund based income which improved by 36% as compared with the same period last year. This growth is despite the one off commission income that the bank gained from the issue of guarantees during last year for IPO’s. The bank maintained its net interest margins at satisfactory levels despite the increasing cost of deposits that prevailed during the year, the bank said in a statement announcing the interim results.
"The cost of overheads had risen by 43% as compared with the same period the previous year. The overhead increase is mainly due to the branch expansion and related activities that were undertaken during the last 18 months. The bank grew its branch network by over56% having opened 23 branches in 2011 and 7 more branches in 2012 so far. This strategic expansion drive assists the bank in establishing its presence in most parts of the country with 71 branches island wide.
"The bank has continued to maintain its asset quality at high levels. The gross NPA ratio has improved from 4.52% in June 2011 to 3.3% in June 2012. Similarly the Net NPA ratio also improved from 2.59% to 2.16% in June 2012. The bank’s total loan portfolio grew by nearly 16% from end of last year and the deposits grew by 17% for the same period reaching a figure of Rs 41 B as at 30th June ‘ 12.
"The earnings reflect a return after tax of nearly 20% on shareholder funds," the bank said.