HDFC Bank Q2 net profit up 20% at Rs. 3,455 cr

Private sector HDFC Bank today reported 20.4 per cent jump in net profit at Rs.3,455.3 crore for the quarter ended September 30.

The bank had earned Rs. 2,869.5 crore profit in the same quarter of the last financial year.

The banks total income for the July—September quarter of the current fiscal was Rs. 19,970.9 crore, up from Rs. 17,324.3 crore in the year—ago period.

NPAs up

Gross non—performing assets (NPAs) rose to 1.02 per cent of gross advances from 0.9 per cent a year ago. The net NPAs also increased to 0.3 per cent from 0.2 per cent.

As a result, provisions and contingencies for the quarter increased to Rs. 749 crore consisting of specific loan loss provisions Rs. 640.7 crore and general and other provisions Rs. 108.3 crore as against Rs. 681.3 crore in the same quarter a year ago.

Net interest income (interest earned less interest expended) for the quarter grew by 19.6 per cent to Rs.7,993.6 crore driven by average assets growth of 19.7 per cent and a net interest margin for the quarter of 4.2 per cent, HDFC Bank said in a statement.

The bank’s total capital adequacy ratio (CAR) as per Basel III guidelines, was at 15.4 per cent as against 15.5 per cent at the end of second quarter of the previous fiscal.

Half-year results

For the half year ended September, the bank’s profit rose by 20.3 per cent to Rs. 6,694.2 crore as compared to Rs. 5,565.1 crore in the same period of 2015—16 fiscal.

Total income of also improved to Rs. 39,293.5 crore as against Rs. 33,827.3 crore in the corresponding period of last fiscal.

HDFC Bank shares were trading down by 0.67 per cent or Rs. 8.50 at Rs. 1,256.90 on the BSE at about 1.30 pm.