Private lender HDFC Bank on Saturday reported a 20.3 per cent growth in net profit to Rs 5,585.9 crore for the third quarter ended December 31, mainly on higher net interest income.
The bank had posted a net profit of Rs 4,642.6 crore in the October-December quarter of the last fiscal.
Total income rose to Rs 30,811.27 crore during the December quarter from Rs 24,450.44 crore in the year-ago period, HDFC Bank said in a statement.
“Net interest income (interest earned less interest expended) for the quarter ended December 31, 2018 grew by 21.9 per cent to Rs 12,576.8 crore, from Rs 10,314.3 crore for the quarter ended December 31, 2017, driven by asset growth of 23.7 per cent and a core net interest margin for the quarter of 4.3 per cent,” it said.
During the quarter, gross non-performing assets (NPAs) rose to 1.38 per cent of the total advances, compared with 1.29 per cent at the end of the third quarter of 2017-18.
Net NPAs of the bank declined to 0.42 per cent of the assets in October-December 2018, against 0.44 per cent a year ago.
However, the bank’s provisions (other than tax) and contingencies increased significantly to Rs 2,211,53 crore as against Rs 1,351.44 crore reported in the corresponding period previous fiscal.
Giving break up of the provisions and contingencies, the bank said, it consist of
specific loan loss of Rs 1,734.6 crore and general provisions and other provisions Rs 476.9 crore.