Higher loan growth and interest income helped HDFC Bank report a 30 per cent increase in net profit at Rs 1,859 crore in the third quarter ended December 31, 2012.
The second largest private sector lender had posted a net profit of Rs 1,430 crore in the year-ago period.
Net interest income (difference between interest earned and interest expended) grew by 22 per cent to Rs 3,799 crore as compared with Rs 3,116 crore in Q3 FY12. ‘Other income’ during the quarter rose by 27 per cent to Rs 1,799 crore (from Rs 1,420 crore in Q3 FY12) predominantly due to fees and commissions.
Net advances as on December 31, 2012, stood at Rs 2.41-lakh crore, a year-on-year (y-o-y) increase of 24 per cent. The proportion of retail loans and wholesale loans in total loans was at 53 per cent and 47 per cent, respectively. Total deposits grew by 22 per cent to Rs 2.84-lakh crore.
“We expect the retail book to outpace the wholesale portfolio for the next couple of quarters,” said Paresh Sukthankar, Executive Director, HDFC Bank.
Net interest margin in the quarter remained stable at 4.1 per cent compared with the corresponding quarter last year, while it declined from 4.2 per cent in the previous quarter.
Provisions during the quarter were lower at Rs 307 crore against Rs 329 crore in the year-ago period. Sequentially, it increased from Rs 292 crore in the June-September quarter.
Total restructured loans stood at Rs 685 crore as on December 31, 2012.
It stood at 0.28 per cent, against 0.37 per cent in the year-ago quarter.
Shares of HDFC Bank ended lower at Rs 659 per share on the Bombay Stock Exchange, down 1.18 per cent over the previous close.