HDFC Bank Q2 net profit rises 20.6%

HDFC Bank on Saturday said its second-quarter net profit rose 20.59% on the back of higher net interest income and other income.

The bank posted a net profit Rs 5,005.73 crore for the three months ended 30th September, compared with Rs 4,151.03 crore in the year-ago period.

Profit was lower than Rs 5,033.4 crore estimated by a Bloomberg poll of 17 analysts.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 20.62% to Rs 11,763.41 crore, from Rs 9752.07 crore in the corresponding period last year.Other income, which includes core fee income, rose 11.36% to Rs 4,015.59 crore during the period, from Rs 3,605.90 crore a year ago.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 1.33% in the September quarter, against 1.33% in the June quarter and 1.26% a year ago.

Provisions during the quarter increased 23.29% to Rs 1,819.96 crore, against Rs 1,476.19 crore in the year-ago quarter. In the April-June quarter, the bank had set aside Rs 1,629.37 crore in provisions. Post-provision, the net NPA ratio was at 0.40% against 0.41% in the April-June quarter, and 0.43% in the year-ago quarter.