HDFC Bank on Saturday reported a 20.3% year-on-year (y-o-y) growth in net profit for the March quarter of 2017-18 to Rs 4,799 crore on the back of higher net interest income (NII), coupled with a rise in other income. Its other income rose 22.7% y-o-y to Rs 4,229 crore in Q4. The bank’s net interest income (NII) — the difference between interest earned and interest expended — rose 17.7% y-o-y to Rs 10,658 crore. The bank’s provisions rose 22% y-o-y to Rs 1,541 crore in the March quarter. HDFC Bank’s net interest margin — a key measure of profitability — in Q3 remained unchanged at 4.3% from the end of December 2017 and March 2017.
Its asset quality remained stable with a 1 basis point (bps) rise in gross non-performing assets (NPAs) ratio — bad loans as a percentage of total loans — to 1.3% in Q4 FY18. However, on a y-o-y basis, the gross bad loan ratio rose 25 bps.