HDFC Bank Profit Rises Nearly 33% To Rs 7,416 Crore In December Quarter On Higher Income Growth

Net interest income (NII) grew 12.6 per cent from Rs 12,576 crore to Rs 14,172.90 crore, HDFC Bank said.

HDFC Bank Profit Rises Nearly 33% To Rs 7,416 Crore In December Quarter On Higher Income Growth

Net interest income grew 12.6 per cent to Rs 14,172.90 crore in the December quarter.

HDFC Bank, the country's biggest lender by market value, reported a 32.8 per cent rise in net profit to Rs 7,416.4 crore for the third quarter of current financial year. The bank had posted a net profit of Rs 5,585.85 crore for the corresponding period in the previous year. The net profit was higher than Street estimates. Analysts had on an average expected HDFC Bank to report a profit of Rs 7,059 crore for the October-December period, news agency Reuters reported quoting Refinitiv Eikon data.

Net interest income (NII), or the difference between interest earned on loans and that paid on deposits, grew 12.6 per cent from Rs 12,576 crore to Rs 14,172.90 crore, driven by a 19.9 per cent increase in advances and 25.5 per cent in deposits, HDFC Bank said in a statement. 

Other income jumped 35.52 per cent to Rs 6,669.28 for the quarter under review, the bank added. Fees and commissions, the main component of other income, grew 24.1 per cent to Rs 4,526.8 crore for the quarter ended December 31, 2019.

Net interest margin remained stable at 4.2 per cent for the quarter.

There was, however, a marginal decline in asset quality. Gross non-performing assets (NPAs) as a percentage of total loans stood at 1.42 per cent at the end of the December quarter, as against 1.38 per cent in the year-ago period.

On Friday, HDFC Bank shares had closed down 0.7 per cent at Rs 1,277 on the BSE on Friday, ahead of the release of its financial results, underperforming the S&P BSE Sensex benchmark index which rose flat.

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