Private sector lender HDFC Bank reported a 22.6% year-on-year increase in net profit for the quarter ended March 31 to ₹5,885.1 crore on the back of healthy growth in net interest income.
Net interest income (NII), the difference between interest earned and interest expended, grew by 22.8% to ₹13,089.5 crore, driven by average asset growth of 19.8% and a core net interest margin for the quarter of 4.4%, the lender said.
Retail loans rise 19%
Growth in NII was aided by a 24.6% growth in domestic advances, fuelled by a 31.9% growth in corporate loans. Retail loans grew by 19%. In the total loan portfolio, retail has a share of 54% while corporate loan is 46%. Retail loans were 57% of the total loan book a year ago, while the share of corporate loans was 43%. Other income grew by 15.2% to ₹4,871.2 crore during the reporting period helped by ₹228.9 crore gain from the sale of investments.
The bank saw a deposit growth of 17% with current and savings account (CASA) growing by 14% and time deposits by 19.4%. CASA deposits were 42.4% of total deposits as of March 31, 2019. “The bank’s continuing focus on deposits helped in maintaining a healthy liquidity coverage ratio at 118%, well above the regulatory requirement,” the bank said.
Asset quality remained stable with gross NPAs at 1.36% of gross advances as on March 31. They were 1.38% on December 31, 2018 and 1.3% on March 31, 2018.
Provision coverage ratio as on March 31, 2019 was 71%. The bank had floating provisions of ₹1,451 crore at the end of March. Provisions and contingencies for the period were ₹1,889.2 crore versus ₹1,541.1 crore. NPA provisions were ₹1,431.2 crore versus ₹1,132.5 crore a year earlier.
