HDFC Bank net rises

Mumbai, July 21: HDFC Bank, the country's second-largest private sector lender, today met analysts' estimates when it reported a 20 per cent growth in its June-quarter net profit, buoyed by a strong growth in its core income.

The lender's net profit during the quarter stood at Rs 3,238.91 crore compared with Rs 2,695.72 crore a year ago.

Core income, or net interest income (NII - interest earned minus interest expended), rose nearly 22 per cent to Rs 7,781.4 crore from Rs 6,388.8 crore in the year-ago period.

According to the bank, this growth was driven by an average assets growth of 20.2 per cent and a net interest margin for the quarter at 4.4 per cent.

Other income, or non-interest revenue, grew 14 per cent to Rs 2,806.6 crore from Rs 2,461.9 crore a year ago.

However, the bank also witnessed a rise in its bad loans during the period. Gross non-performing assets (NPAs) rose to Rs 4,920.89 crore from Rs 4,392.83 crore in the preceding three months and Rs 3,652.23 crore in the year-ago period.

The percentage of gross NPA to gross advances rose 10 basis points sequentially to 1.04 per cent. Net NPAs were at 0.32 per cent against 0.28 per cent in the preceding quarter.

Deputy MD Paresh Sukthankar said the bank was "comfortable" with a rise in bad loans. "We are still very comfortable," he said, adding "no serious large" corporate account had led to the rise in the bad loans.

HDFC Bank