Net income for the first quarter of 2011 stood at $175 million, up 35% from the same period last year. A better-than-expected retail loan pick-up and higher yields on liquid assets improved net interest income by 26% to $310 million in the March quarter. Retail loans boosted overall credit numbers, while total loans surged 23% in March quarter compared to same period last year. Net interest margin recovered marginally to 4.8% in 2011 first quarter from 4.6% in 2010 fourth quarter.
A 14% quarter-over-quarter drop in provisions declined the provision coverage to 189.5% from 198% in the fourth quarter of 2010.Operating efficiencies improved to 40.1% as the company managed to rationalize its operating expenses. The stock is trading at 11.7 times its 2011 earnings with a potential to deliver up to 32% in the next one year.