The bank's increased income mainly arose from the 'other incomes' and imporved asset quality. "Despite no relief to banks on the funding side, we have coped well in a deteriorating operating environment to deliver a healthy growth in the bottomline," said Mr Romesh Sobti, CEO and MD.

Bank's core fee income grew from Rs. 187 crore to Rs. 269 crore , a growth of 44%. Core fee income is one of the components of other incomes.

However the bank's net interest margin, the key indicator of profitability shrunk from 3.41% to 3.22%. Bank managed to grow its deposits by 28%; the credit growth was 31%. Retail loans segment grew by 46%, while corporate loans by 28%.

Mr. Sobti hoped to improve the asset quality despite the negative outlook of the loan quality.

The bank is also working on the RBI's recent directions on reducing the promoter's holding in a private sector bank to 10%.