HDFC Bank Q1 net up 20.7 percent, bad loans rise

MUMBAI (Reuters) - HDFC Bank Ltd, India's second-biggest private sector lender by assets, reported on Tuesday a 20.7 percent rise in quarterly profit, lagging estimates, as bad loans rose.

The Mumbai-based lender said net profit rose to 26.96 billion rupees ($423 million) for its fiscal first quarter to June 30, from 22.33 billion rupees reported a year earlier.

Analysts on average had expected a net profit of 27.39 billion rupees, according to data compiled by Thomson Reuters.

Gross non-performing loans as a percentage of total loans rose to 0.95 percent from 0.93 percent in the March quarter.

($1 = 63.7350 rupees)

(Reporting by Devidutta Tripathy; Editing by Sunil Nair)