New Delhi: Private lender HDFC Bank on Saturday reported a 20.3% growth in net profit to 5,585.9 crore for the third quarter ended December 31, mainly on higher net interest income. The bank had posted a net profit of 4,642.6 crore in the October-December quarter of the last financial year.

Total income rose to 30,811.27 crore during the December quarter against 24,450.44 crore in the year-ago period, HDFC Bank said in a statement.

“Net interest income (interest earned less interest expended) for the quarter ended December 31, 2018 grew by 21.9% to 12,576.8 crore, from 10,314.3 crore for the quarter ended December 31, 2017, driven by asset growth of 23.7% and a core net interest margin for the quarter of 4.3%," it said.

During the quarter, gross non-performing assets (NPAs) rose to 1.38% of the total advances, compared with 1.29% at the end of the third quarter of 2017-18. Net NPAs of the bank declined to 0.42% of the assets in October-December 2018, against 0.44% a year ago.

However, the bank’s provisions (other than tax) and contingencies increased significantly to 2,211,53 crore against 1,351.44 crore reported in the corresponding period of the previous financial year. Provisions for the quarter ended December 31, 2018 include a charge of 322.4 crore towards contingent provisions, it said.

Other incomes of the bank increased to 4,921.01 crore against Rs3,869.17 crore in the same quarter last fiscal.

For the nine month ended December 2018, the bank's net profit rose by 19.7% to 15,193.0 crore from 12,687.47 crore in the year-ago period.

The bank earned a total income of 85,393.5 crore compared to 69,912.0 crore in the corresponding period of the previous year. It said total balance sheet size as of December 31, 2018 was 11,68,556 crore against 9,49,079 crore as of December 31, 2017.

Total deposits rose by 22% to 8,52,502 crore, while total advances grew by 24 per cent 7,80,951 crore.

The lender’s total capital adequacy ratio (CAR) as per Basel III guidelines was at 17.3% as on December 31, 2018 (15.5% as on December 31, 2017) against a regulatory requirement of 11.025%, which includes a capital conservation buffer of 1.875%, and an additional requirement of 0.15% due to the bank being identified as a Domestic Systemically Important Bank (D-SIB).

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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