HDFC Bank, country's biggest lender by market value, reported a 20.31 per cent rise in third-quarter net profit on Saturday, lifted by higher interest and fee income.
Net profit rose to a record 5,586 crore rupees for the three months to December 31, from 4,643 crore rupees a year ago, the bank said.
Asset quality was stable, with gross bad loans as a percentage of total loans at 1.38 per cent by the end of December, compared to 1.33 per cent in the previous quarter and 1.29 per cent in the same period last year.
Loans have grown at a quicker pace at private-sector banks, which have grabbed market share from state-controlled lenders that carry the majority of bad loans in India.
HDFC Bank's total loans at the end of December were 7.81 lakh crore rupees, with retail loans up 24.0 per cent.
Its relatively small exposure to the troubled infrastructure sector, which has forced other banks to make profit-denting provisions, has helped HDFC Bank maintain stable asset quality.
Net interest income climbed 21.9 per cent, while net interest margin was at 4.3 per cent for the quarter.
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