HDFC Bank’s March quarter profit rises 23% on higher net interest income
Net profit rose to `2,327 crore in the three months ended 31 March from `1,890 crore in the year earlier
Mumbai: HDFC Bank Ltd said fourth quarter profit rose 23%, led by a 15% gain in net interest income.
Net profit rose to ₹ 2,327 crore in the three months ended 31 March from ₹ 1,890 crore in the year earlier. That compares with the ₹ 2,384 crore fourth quarter profit, according to the survey of 29 analysts’ estimates by Bloomberg.
Net interest income, or the difference between what a bank earns from lending and what it pays on deposits, increased to ₹ 4,953 crore from ₹ 4,295 crore “driven by an average asset growth of 20% and a net interest margin of 4.4%," the bank said in a statement to stock exchanges on Tuesday.
HDFC Bank’s loan book increased 26% to a total of ₹ 3.03 trillion during the quarter.
Other income, or income earned through fees, trading in foreign exchange and gain on revaluation or sale of investments, increased 11% to ₹ 2,001 crore from ₹ 1,804 crore in the year earlier.
Net non-performing assets at 0.3% of net advances at the end of March was little changed from 0.2% in the year earlier.
Shares of HDFC Bank rose 1.63% to ₹ 728.25 on BSE, while the exchange’s benchmark Sensex ended flat at 22,758.37 points. S&P BSE Bankex rose 1.6% to 14,846.18.
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