PRIVATE sector lender HDFC Bank on Tuesday reported net profit of R2,696 crore in Q1FY16, a 21% y-o-y rise, supported by higher other income. Other income of the bank grew 33% y-o-y to R2,462 crore in the June quarter.
Net interest income — the difference between interest earned and interest expended — grew 23.5% y-o-y to R6,389 crore, driven by average assets growth of 25.9% and a net interest margin of 4.3%. Other income at R2,461.9 crore grew 33.0% over R1,850.6 crore in the corresponding quarter last year.
“The four components of other income were fees and commissions of R1,713.0 crore, foreign exchange and derivatives revenue of R348 crore, gain on revaluation/sale of investments of R125.9 crore and miscellaneous income, including recoveries, of R275.0 crore,” the bank said in a statement.
Asset quality remained almost constant with net non-performing asset (NPA) ratios moving up 2 basis points sequentially and shrinking 5 bps compared with the year-ago quarter.
“Total restructured loans (including applications under process for restructuring) were at 0.1% of gross advances as of June 30, 2015, against 0.2% in Q1 last year,” the bank said.
While total deposits rose 30.1% y-o-y to R4.84 lakh crore, advances for the June quarter rose 22.4% y-o-y to R3.82 lakh crore. “This loan growth was contributed by both segments of the bank’s loan portfolio, with domestic retail loans and wholesale loans… growing 24.6% and 18.5%, respectively,” it said
Provisions in Q1FY16 stood at R728.0 crore (consisting of NPA provisions of R557.5 crore) against R482.8 crore for the corresponding last year.