Mumbai: HDFC Bank Ltd, India’s second largest private sector lender, recorded a 32.90% rise in net profit to Rs1,087.83 crore in the December quarter, driven by an increase in its interest and fee income.
The profit has beaten the Street estimate. Analysts’ estimates at Bloomberg had forecast net profit of Rs1,040 crore for the bank.
HDFC Bank added, Rs5,229.96 crore by way of interest income, a 29.62% rise from the Rs4,034.81 crore earned in the same period last year.
A 25.44% rise in fee income also added to the bank’s profit. HDFC earned Rs1,127.82 crore through fees versus Rs899.08 crore earned last year.
Non performing assets (NPAs) of the bank dropped to 0.2% of its net advances from 0.5% last year.
Bigger rivals State Bank of India and ICICI Bank had also beat market expectations with an improvement in asset quality in an economy growing at 8.5%, but rising interest rates is a concern for the sector.
The Reserve Bank of India (RBI) raised interest rates on Tuesday by a quarter of a percentage point to clamp down on resurgent inflation, and spurred expectations it would raise rates again in coming months to check price pressures.
HDFC shares lost 1.67% to close at Rs2052.15 apiece on Bombay Stock Exchange on Thursday while the exchange’s benchmark index, Sensex, lost 1.5%.
Reuters also contributed to this story