HDFC Bank Reports 33% Jump In Q3 Net Profit

On Saturday, HDFC Bank reported a 32.77 percent increase in net profit for the December-ended quarter at Rs 7,416.48 crore from Rs 5,585.85 crore in the same period a year ago.

The private lender's net revenue (net interest income plus other income) in the October-December period rose by 19.1 percent to Rs 20,842.2 crore when compared to the previous year. Net interest income (interest earned minus interest paid) grew from Rs 12,576.8 crore to Rs 14,172.9 crore on a year-on-year basis.

The asset quality of the bank deteriorated marginally in the period of review with percentage of gross non-performing assets (NPA) reported at 1.42 percent as against 1.38 percent in the preceding quarter. Net NPAs rose to 0.48 percent from 0.42 percent in the September-ended quarter.

HDFC Bank's 'other income' in the quarter surged by 32 percent on a year-on-year basis to Rs 6,669.28 crore as against Rs 4,921 crore in December 2018.

Fees & commissions, the main component of other income, grew by 24.1 percent to Rs 4,526.8 crore.

Its provisions and contingencies for the December-ended quarter were at Rs 3,043.6 crore as against Rs 2,211.5 crore. The bank said that special loss provisions made in the period included one-offs of approximately Rs 700 crore primarily relating to corporate accounts.

HDFC Bank's total deposits rose by 25.2 percent to Rs 1,067,433 crore. In its regulatory filing the bank said that its continued focus on deposits have helped it maintain a healthy liquidity coverage ratio of 140 percent which is much about regulatory requirement.

Total advances in the quarter stood at Rs 936,030 crore, up by 19.9 percent from a year ago.