HDFC Bank reported a 20.3% growth in its net profit for the quarter ended December 31 to ₹5,585.9 crore on interest income and non-interest income.
Net interest income grew 21.9% to ₹12,576.8 crore, driven by asset growth of 23.7% and a core net interest margin of 4.3% for the quarter, the bank said in a statement.
Other income grew 27.2% to ₹4,921 crore. The growth in other income was boosted by profit from sale of investments which was at ₹474 crore compared with ₹259.4 crore reported during the same period of the previous year. Gross non-performing assets inched up to 1.38% of gross advances as on December 31, 2018 against 1.33% three months ago and 1.29% a year ago. Provision coverage ratio remained healthy at 70% — one of the highest among Indian lenders. The bank made provisions for ₹2,211.5 crore in the quarter compared with ₹1,351.4 crore a year ago. Provision for NPAs was ₹1,734.6 crore compared with ₹1,356 crore a year ago.
“Provisions for the quarter ended December include a charge of ₹322.4 crore towards contingent provisions,” the bank said.
Domestic loan growth was 24.1% year-on-year, driven by 24% growth each in retail and 0 growth. Retail loans constituted 55% of the total loan book. Deposit growth was 22% while current and savings account deposit growth was 13%.
