In another quarter of steady growth, HDFC Bank on Tuesday reported a net profit of R3,455.33 crore for the quarter ended September, an increase of 20.4% year-on-year. The growth in the profit came on the back of a 19.6% year-on-year rise in the net interest income (NII) to R7,993.60 crore.
The private sector lender’s non-interest income stood at R2,901 crore, taking the total income to R19,970.90 crore, up 15.3% year-on-year. Net interest margins (NIM) improved 20 basis points (bps) Y-o-Y to 4.2% at the end of
The asset quality remained steady with the gross non-performing asset (NPA) ratio at 1.02% for the quarter under review and the NPA ratio at 0.30%.
Deputy managing director Paresh Sukthankar said the retail portfolio grew just under 22%. “Most products have grown in medium to high teens.”
The growth in the wholesale portfolio lagged that of the retail book with some short-term loans running off during the quarter.
The lender’s advances grew 18.1% to R4,94,418 crore with domestic retail loans growing 21.7% year-on-year and wholesale loans increasing 14.3%.
Operating expenses rose 16.2% to R4,870 crore, even as the cost-to-income ratio for the quarter improved to 44.7% from 45.4% in the year-ago period.
The bank’s current account and savings account (CASA) deposit ratio improved by 69 bps year-on-year to 40.41% by the end of September.
HDFC Bank’s total capital adequacy ratio (CAR) was at 15.4% as on September 30, 2016, compared to 15.4% at the end of September 2015.
Tier-I capital adequacy ration was at 13.3%, as against 12.8% a year ago.