HDFC Bank strengthens on reporting 20% jump in Q3 net profit

HDFC Bank “s third quarter earnings matched analysts” expectations on Monday.

Its total income rose to Rs 18,282 crore during the December quarter, from Rs 14,931 crore in the year-ago period.

HDFC Bank today reported a 20.1 per cent rise in the October-December quarter net profit at Rs 3,358.8 crore on higher core interest income as the second largest private lender said it is untouched by the regulator’s special review on big-ticket bad assets.

HDFC Bank said the spike in net profit owes to a 24-per cent increase in the bank’s net interest income to Rs7,068.5 crore during the quarter, driven by average assets growth of 28.2 per cent and a net interest margin of 4.3 per cent. 9 crore from Rs560.

As on December 31, 2015, in quantum terms the bank’s gross and net non-perfoming assets went up to Rs.4,255.20 crore and Rs.1.260.60 crore respectively from Rs.3,467.91 crore and Rs.903.66 crore as on December 31, 2014. 23 lakh crore, an increase of 26.5 per cent over December 2014.

The gross non-performing assets (NPAs) were at 0.97% of gross advances as on December 31, 2015 as against 0.99% as on December 31, 2014.

Tax expenses during the quarter increased 21 percent to Rs 1,725.1 crore compared to corresponding quarter of last fiscal. Net non-performing assets, which is non-performing assets without provisions, rose to 0.29 per cent against 0.25 per cent sequentially.

Capital adequacy ratio remained strong at 15.9 percent in Q3 compared to 15.5 percent in preceding quarter and 15.7 percent in year-ago period.