IDFC First Bank surged as much as 9% on Monday to touch a fresh 52 week high of ₹88.76, after the bank posted its best ever quarterly profit.

The rally followed the bank’s June quarter results, announced over the weekend on July 25. Net profit came in at ₹1,075 crore, more than double what it earned in the same quarter last year, when profit stood at ₹463 crore.

A lot of that jump came from the bank’s core lending business doing well, along with lower provisioning for bad loans compared to a year ago.

Net interest income, which is basically the difference between what the bank earns on loans and what it pays out on deposits, rose 21% to ₹5,972 crore. Asset quality also improved.

Gross bad loans fell to 1.51% of total loans from 1.97% a year earlier, while net bad loans dropped to 0.44% from 0.55%. The bank’s net interest margin, a key measure of how profitably it lends money, rose to 5.96% from 5.71%.

Loan growth stayed strong too. The bank’s total customer business, which includes both loans and deposits, increased 18.6% to ₹6,04,776 crore, while total loans and advances increased more than 20% year over year to ₹3,05,370 crore.

MD and CEO V Vaidyanathan said the bank’s return on assets crossed 1% for the first time, calling it a sign that years of investment in the business were starting to pay off.

As of 12:24 pm on NSE, IDFC First Bank shares were trading at ₹85.27, up 5.55% for the day.

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