On the back of strong growth in interest income, HDFC Bank reported a net profit of Rs 912.1 crore for the quarter ended September, a 32.7 per cent increase from Rs 687.46 crore an year ago.
The country’s second largest private sector lender was also helped by lower provisions for bad loans, which fell to Rs 454.5 crore in the September quarter, against Rs 594.1 crore an year ago.
Net interest income grew 29.2 per cent to Rs 2,526.3 crore, against Rs 1,955.3 crore in the September 2009 quarter. Owing to a decrease in trading revenues, non-interest income declined nine per cent on an year-on-year basis to Rs 96,070 crore from Rs 1,053.54 crore. The bank incurred a loss of Rs 52 crore on its trading book compared to a profit of Rs 151 crore in the same quarter last year.
However, fee income grew 16 per cent to Rs 857 crore, against Rs 738.6 crore in the corresponding quarter last year.
Net interest margins fell to 4.2 per cent, a decline of 10 basis points from 4.3 per cent in the year-ago period.
At Rs 158,512 crore, total outstanding loans grew 37.7 per cent over the same quarter last year. Adjusting for a single large short-term corporate loan disbursed during the quarter, the core growth in advances was 32 per cent, the bank said. Retail loans grew by 30.8 per cent over the same period last year. They amounted to Rs 81,950 crore and constituted 51.7 per cent of gross advances in the second quarter of the current financial year.
Total deposits amounted to Rs 195,321 crore, up 30.4 per cent over the same period last year. The current account-savings account (CASA) deposits made up 50.6 per cent of the total deposit book. CASA deposits registered a growth of 31.1 per cent over the same quarter last year. “We usually grow four to five per cent faster than the sector and expect to maintain that pace going forward,” said Sashi Jagdishan, chief financial officer, HDFC Bank.
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Gross non-performing assets (NPAs) as a percentage of gross advances fell to 1.2 per cent this quarter, against 1.8 per cent in the same period previous year.
The bank’s shares fell 1.36 per cent over previous close to end the day at Rs 2,365.6 on the Bombay Stock Exchange. The results were announced after market closing.