HDFC Bank Q3 profit rises 15 pct to Rs. 3865 crore, loan growth at 13.5 pct
New Delhi [India], Jan 24 (ANI): HDFC Bank on Tuesday announced a growth in its profit in the third quarter, which grew by 15 percent to Rs. 3,865.3 crore compared with Rs. 3,356.84 crore in year-ago period.
It was driven by other income, operating profit and net interest income. Net interest income, the difference between interest earned and interest expended, increased 17.5 percent year-on-year to Rs. 8,309 crore in the quarter gone by, with loan growth of 13.5 percent (0.1 percent QoQ).
Total advances (loans) as of December 2016 were Rs. 4.95 lakh crore after considering repayments of about USD two billion of overseas loans linked to FCNR deposits, with domestic loan growth of 17.5 percent at 4.77 lakh crore.
The country's second largest private sector lender said deposits grew by 21.1 percent year-on-year (7.3 percent QoQ) to Rs. 6.34 lakh crore, after considering maturities of about USD three billion of foreign currency non-resident (FCNR) deposits raised during the quarter ended December 2016.
The bank further said CASA deposits growth saw a spurt largely attributable to demonetisation exercise, with current account deposits growing by 36.7 percent YoY and saving account deposits by 37.8 percent.
Net interest margin during the quarter contracted to 4.1 percent compared with 4.2 percent in previous quarter. Earnings beat analysts' expectations as low cost deposit flow was very strong. Profit was estimated at Rs 3,770.7 crore and net interest income at Rs 8,203.8 crore for the quarter.
The Asset quality was more or less stable in the quarter gone by. Gross non-performing assets as a percentage of gross advances increased to 1.05 percent (from 1.02 percent QoQ) and net NPA climbed to 0.32 percent (from 0.3 percent QoQ).
In absolute terms, gross NPA rose 3.2 percent quarter-on-quarter to Rs. 5,232.3 crore and net NPA increased five percent to Rs. 1,564.3 crore in the quarter ended December 2016. Other income (non-interest income) grew by 9.4 percent Rs. 3,142.7 crore, with fees and commissions segment, which contributed 70 percent to other income, showing a 10 percent growth at Rs. 2,206.8 crore in Q3. Operating profit was up by 15.2 percent year-on-year to Rs. 6,609.25 crore while tax cost increased 17.6 percent to Rs. 2,028.14 crore in the quarter gone by. (ANI)