HDFC Bank Q3 profit increases 20% to Rs 2,794 crore

HDFC Bank on Saturday reported a 20% growth in net profit to Rs 2,794.5 crore for the quarter ended December 2014. The jump in profit is largely on account of higher Other Income and Net Interest Income (NII).

NII, the difference between interest income and interest expenditure, grew 23% to Rs 5,699.9 crore, compared with Rs 4,634.8 crore in the third quarter of the previous financial year.

Even the so-called Other Income, which includes fees, commissions, forex gains etc., grew by 18% in the quarter ended December to Rs 2,534.9 crore as compared to Rs 2,148.3 crore.

Net interest margin (NIM), a key indicator of profitability, also expanded to 4.4% compared to 4.2% in the third quarter of last financial year.

Asset quality at India’s second largest private sector bank remained stable with gross non-performing assets (NPAs) at 0.99% of gross advances at the end of the third quarter as compared to 1.01% in the same period a year ago. Net NPAs were at 0.26% of net advances at the end of December quarter. Total restructured loans (including applications under process for restructuring) were at 0.1% of gross advances in the period under review compared to 0.2% at the end of December quarter last financial year.

HDFC Bank’s total Capital Adequacy Ratio (CAR) at the end of December quarter, as per Basel III norms was 15.7%.

HDFC Bank