<h1>Regional Bank Posts 16.7% Profit Rise Despite Terror Impact, Boosts NII, Cuts NPAs Under 3.5%</h1> A regional bank reported a 16.7% increase in net profit to approximately Rs 485 crore for the April-June quarter of FY26, despite challenges from a local terror attack affecting business activity. Net interest income rose 7%, and other income increased by 29%. The bank made an impairment provision of Rs 87 crore related to the amalgamation of two regional rural banks, which impacted profitability metrics but excluding this, profit growth would exceed 30% year-on-year. Asset quality improved with gross non-performing assets declining to 3.5%, and the capital adequacy ratio remained strong at nearly 16%. The bank's deposits and net advances grew by 12% and 6%, respectively. The institution plans to enhance growth through branch expansion, strategic partnerships, and digital investment while maintaining prudent lending and recovery practices to reduce NPAs further.