In the September quarter interest income rose 45.4 percent to 4.53 billion rupees and interest expenses grew at a faster 61 percent to 2.7 billion rupees amid a rising interest environment.

The group grew net interest income by a marginal 5.44 percent to 2.14 billion rupees.

Fee income rose 8.1 percent to 595 million rupees with forex income falling 0.8 percent to 117 million rupees and unspecified other income rising 10 percent to 477 million rupees.

The bank managed to trim non-interest expenses 3 percent to 1.7 million rupees from a year earlier.

In the nine months to September performing loans grew 12.8 percent to 97.4 billion rupees. The regulator has set an 18 percent ceiling in credit growth for 2012.

Non-performing loans fell 3.5 percent to 20.9 billion rupees.

The bank provided 119 million rupees for non-performing loans, up from 125 million rupees a year earlier.

But there was a 46 million rupees reversal in a provision for investments that fell in value compared to 276 million in provision a year earlier, helping boost profits.

Deposits grew 11.3 percent to 135 billion rupees. Group gross assets grew 7.42 percent to 179 billion rupees and net asset kept pace growing 7.21 percent to 19.2 billion rupees.