HDFC Bank Q2 profit rises 20% to Rs2,869 crore

HDFC Bank Ltd on Wednesday said its second-quarter profit rose 20.5% on strong growth in both core lending income and other income.

Net profit rose to Rs.2,869.45 crore for the three months ended 30 September fromRs.2,381.46 crore in the same quarter last year.

Profit was marginally lower than the Rs.2,896.10 crore estimated by a Bloomberg poll of 30 analysts.

Net interest income, or the difference between the interest earned on loans and that paid on deposits, increased 21.2% to Rs.6,681 crore from Rs.5,511 crore.

Other income, which includes fee income, rose 25% to Rs.2,551.76 crore.

The bank’s net interest margin (NIM) for the quarter stood at 4.2%, down 10 basis points (bps) from 4.3% reported in the April-June quarter.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 0.91% in the quarter compared with 1.02% in the year-ago quarter.

During the quarter, the bank set aside Rs.681.29 crore as provisions compared withRs.455.89 crore in the year-ago quarter. The bank had increased provisions in the April-June quarter as well and explained it as counter-cyclical provisions. In the April-June quarter, the bank had set aside Rs.727.99 crore in provisions.

Post-provision, the net NPA ratio was at 0.25% against 0.28% in the year-ago period.

At 12.50pm, shares of HDFC Bank fell 0.46% to Rs.1,090.10, while the benchmark BSE Sensex lost 0.4% to 27,209 points.

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