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).
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