The Hindu Business Line : HDFC Bank Q2 net up 43% on higher interest income

The growth was mainly on account of higher interest income on the back of strong credit growth, said Mr Paresh Sukhthankar, Executive Director, HDFC Bank.

As the merger of Centurion Bank of Punjab with HDFC Bank became effective in May, the figures of this fiscal are not comparable with those of last year.” Without Centurion Bank’s figures our growth would have been about 25-30 per cent and our credit growth would have been around 30-35 per cent, said Mr Sukhthankar.

Net interest income grew 60 per cent to Rs 1,867 crore (Rs 1,163 crore) and total advances grew 64 per cent to Rs 1,07,820 crore (Rs 65,812 crore).

Net interest margin was 4.2 per cent (4 per cent).

The growth in wholesale credit was at 25-30 per cent, while the growth in retail credit was slightly lower at 15-20 per cent, he said.

Mr Sukhthankar said that credit growth could see some moderation in the second half of this fiscal, relative to the first half, given the higher interest rates and general economic slowdown.

Net NPAs rose marginally to 0.6 per cent (0.4 per cent), also on account of the merger with Centurion Bank.

The share of low cost CASA deposits (current account savings accounts) to total deposits is at 44 per cent, which is among the highest in the industry, Mr Sukhthankar said.

The bank reported a loss of Rs 162 crore in treasury income against a profit of Rs 113 crore last year, due to the rise in the spreads of corporate bonds.

Shares of HDFC Bank closed at Rs 1,087.35, down 4.15 per cent from the previous close of Rs 1,134.45, on the BSE, on Thursday.