Private sector HDFC Bank Saturday reported a rise of 20.6 per cent in its net profit to Rs 5,005.73 crore for the second quarter ended September this fiscal, as the core income grew at a healthy pace.
The bank had registered a net profit of Rs 4,151.03 crore in the July-September quarter of 2017-18.
Total income for the quarter grew by 21.2 per cent to Rs 28,215.2 crore as against Rs 23,276.2 crore, the bank said in a regulatory filing.
The net interest income (interest earned minus interest expended) for the quarter grew by 20.6 per cent to Rs 11,763.4 crore, driven by average asset growth of 22.9 per cent and a net interest margin of 4.3 per cent, it said.
The net interest income stood at Rs 9,752.1 crore in September quarter of 2017-18.
On asset front, the gross non-performing assets (NPAs) of the bank rose slightly to 1.33 per cent of the gross advances as on September 30, 2018 from 1.26 per cent on September 30, 2017.
More From This Section
In value terms, the gross NPAs of the bank stood at Rs 10,097.73 crore by end of September quarter, compared to Rs 7,702.84 crore.
The net NPAs or bad loans, however, fell to 0.40 per cent of the net loans by end of second quarter against 0.43 per cent. The absolute value of net NPAs was at Rs 3,028.24 crore as against Rs 2,596.83 crore.
The provisions and contingencies for the quarter ended September 30, 2018 were Rs 1,820 crore as against Rs 1,476.20 crore as on September 30, 2017.
The lender said it made preferential allotment of more than 3.90 crore equity shares to its parent Housing Development Finance Corporation (HDFC Ltd) at a price of Rs 2,174.09 crore on July 17 aggregating to Rs 8,500 crore.
On August 2, the bank concluded a qualified institutional placement (QIP) of over 1.28 crore equity shares at a price of Rs 2,160 aggregating to Rs 2,775 crore and an ADR offering of 17.5 million, representing 5.25 crore equity shares aggregating to USD 1.82 billion (equivalent to Rs 12,440.90 crore).
Among other key metrics, total deposits of the bank rose by 21 per cent year-on-year to Rs 8.33 lakh crore as of September-end.
"The focus on deposits has helped in maintenance of a healthy liquidity coverage ratio at 118 per cent, much above the regulatory requirement," the bank said.
The advances were up at Rs 7.51 lakh crore as against Rs 6.05 lakh crore.
The bank said its domestic advances grew by 24.2 per cent during the second quarter. Overseas advances constituted 3 per cent of total advances.
Total balance sheet size as of September 30, 2018 was Rs 11.70 lakh crore as against Rs 9.34 lakh crore on September 30, 2017.
The bank's total Capital Adequacy Ratio (CAR) as per Basel Ill guidelines was at 17.1 per cent as on September 30, 2018 as against a regulatory requirement of 11.025 per cent, it said.
HDFC Bank's distribution network was at 4,825 banking outlets and 13,018 ATMs across 2,718 cities/towns as against 4,729 banking outlets and 12,259 ATMs across 2,669 cities/towns a year ago.
Of the total banking outlets, 53 per cent are in semi-urban and rural areas.
The employees count of the bank stood at 94,907 as of end-September.