India's largest private sector lender HDFC Bank Ltd. saw its net profit for the July-September quarter rise 20% year-on-year on higher net interest income and lower provisions.
Net profit for the quarter stood at Rs 10,606 crore, compared with Rs 8,834.3 crore a year ago. This is the first time HDFC Bank has crossed Rs 10,000 crore in net profit.
Core income, or NII, for the bank rose 19% year-on-year to Rs 21,012 crore. Similarly, other income stood at Rs 7,596 crore, marginally up 2.6% from last year. Net interest margin for the quarter rose to 4.1%
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Gross non-performing asset ratio for the bank improved by 5 basis points quarter-on-quarter to 1.23% as of Sept. 30. Net NPA ratio, too, improved to 0.33%, down 2 basis points sequentially.
Provisions for the quarter stood at Rs 3,240 crore, compared with Rs 3,925 crore a year ago, a fall of 17.4%.
Total deposits for HDFC Bank rose 19% from a year ago to Rs 16.73 lakh crore. Savings account deposits stood at Rs 5.29 lakh crore, while current account deposits stood at Rs 2.3 lakh crore. CASA deposits constituted 45.4% of total deposits.
Total advances rose 23.4% year-on-year and stood at Rs 14.8 lakh crore. Domestic retail loans rose 21.4% from a year ago, while commercial and rural banking loans rose 31.3%. Corporate and wholesale loans rose by 27% year-on-year.
HDB Financial
The bank's non-bank finance company subsidiary HDB Financial Services Ltd reported a net profit of Rs 471.4 crore, up from Rs 191.7 crore a year ago.
Total loan book for the NBFC was at Rs 63,112 crore. Stage three assets, or loans overdue for more than 90 days, stood at 4.88% of the assets. Capital adequacy ratio stood at 20.8%, while Tier-1 capital ratio stood at 16%.
HDFC Bank holds 94.9% stake in HDB Financial.
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