HDFC Bank Q3 profit up 20% to Rs 46.43 bn as interest, fee income rise
The net interest margin, the difference between the yield on advances and cost of fund, stood at 4.3%
 "HDFC Bank Q3 profit up 20% to Rs 46.43 bn as interest, fee income rise")
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Private sector lender HDFC Bank’s third-quarter net profit rose 20.1 per cent over the previous year quarter, backed by rise in interest and fee income.
The bank’s net profit rose to Rs 46.4 billion for the quarter ended December, up from Rs 38.6 billion in the year-ago quarter. Total income rose to Rs 244.50 billion during the December quarter, up 17.84 per cent from Rs 207.48.27 billion in the year-ago period.
The bank's net interest income, or the interest earned minus interest expended, rose 24.1 per cent on a year-on-year basis to Rs 103.14 billion.
The net interest margin, the difference between the yield on advances and cost of fund, stood at 4.3 per cent.
The capital adequacy ratio (CRAR) for the quarter was 15.5 per cent against 15.9 per cent in the previous year’s quarter. The bank has approved raising capital through equity shares upto Rs 240 billion during the quarter.
“With our pace of growth, we are consuming a lot of capital over the last few quarters. The capital raised should support our growth for the next few years, said Deputy Managing Director, Mr Paresh Sukthankar.
The deposit and credit grew at 10 per cent to Rs 6,990 billion and 27.5 per cent to Rs 6,312 billion respectively in the full-year period. The bank has seen considerable growth, both in retail and wholesale. The bank is ‘indifferent and agnostic’ about where the growth is coming from, since there is adequate provisioning for both, according to Suthankar.
The gross non-performing assets (NPAs), as a percentage of total advances, in the present quarter, stood at 1.29 per cent and at 1.05 per cent in the September quarter.
The net non-performing assets (NPAs) as a percentage of total loans rose marginally to 0.44 per cent at the end of December, from 0.32 per cent in same period last year.
HDFC Bank's provisions (other than tax) and contingencies increased to Rs 13.51 billion as against Rs 7.15 billion reported in the corresponding period a year ago.
Shares of HDFC Bank ended one per cent up at Rs 1,951.20 on the BSE on Friday.
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