HDFC Bank reported an improvement in asset quality for the quarter ended December while net profit rose 18% over the year ago-period on the back of a surge in net interest income.

The country’s largest private sector lender posted net profit of Rs 8,758.3 crore in the fiscal third quarter while net interest income stood at Rs 16,317.6 crore. Non-interest income grew 11.6% year-on-year.

The bank’s gross non-performing asset (NPA) for the quarter stood at 0.81%. The net NPA ratio was at 0.9% versus 0.17% a quarter ago.

HDFC Bank said that without accounting for Supreme Court’s standstill, gross NPA ratio was at 1.38% in December and net NPA was at 0.4%.

Advances grew 16% to Rs 10.82 lakh crore. Deposits rose 19% year-on-year to Rs 12.71 lakh crore. The CASA (current account savings account) ratio stood at 43%, up from 42.2% a quarter ago.

HDFC Bank’s credit cost fell to 1.25%, from 1.41% a quarter ago. Provisions and contingencies were at Rs 3,414.1 crore versus Rs 3,043.6 crore a year ago.