RBL Bank on Tuesday reported a 36% year-on-year (y-o-y) increase in net profit to Rs 204.54 crore for the September quarter of FY19. The bank posted a sizeable increase in profits despite reporting an 86.5% y-o-y jump in provisions. Net interest income (NII), the core income a bank earns by giving loans, increased by 41% y-o-y to Rs 593 crore against Rs 421 crorea year ago. Net interest margin (NIM) was reported at 4.08% against 4.04% in Q1FY19, an improvement of 4 basis points (bps). Provisions sequentially decreased marginally by 0.4% to Rs 13,968 crore. The lender\u2019s asset quality remained stable. Gross non-performing assets (NPAs) stood at 1.40% as a share of advances, unchanged from the end of June. The net NPA ratio improved marginally to 0.74% from 0.75% at the end of Q1. While talking to reporters about the bank\u2019s exposure towards IL&FS, Rajeev Ahuja, executive director, RBL Bank, said the total exposure is in low double digits and is cash-secured. \u201cWe have no issue on risk provisioning. We also have a foreign exchange contract through which we owe money to IL&FS\u201d, he said. The bank reported a healthy growth in lending \u2014 advances for the quarter grew 37% y-o-y to Rs 45,873 crore \u2014 while deposits recorded a 31% y-o-y growth to Rs 47,790 crore. CASA ratio sequentially increased to 24.51% compared to 23.67% at the end of Q2FY18. Capital adequacy ratio as per Basel III capital regulations was reported at 13.12%, down from 15.95 % as at September 30, 2017.