HDFC Bank quarterly net profit rises 27%

HDFC Bank quarterly net profit rises 27%

HDFC Bank, India's largest private lender, said on Saturday its net profit rose 27% in the second quarter of its financial year, helped by loan growth and a higher net interest margin (NIM).

The bank said it made a net profit of 63.44 billion rupees ($893 million), compared with 50.05 billion rupees in the same period of last year.

Gross non-performing assets (NPA), a measure of asset quality, was largely stable at 1.38% of gross advances, while net NPA was at 0.42%, HDFC said.

However, provisions rose to 27 billion rupees compared with 18.20 billion rupees at the end of September 2018.

NIM, a key indicator of a bank's profitability, was 4.2%.

Total advances as of the end of September 2019 were at 8,969.84 billion rupees, up 19.5% over the corresponding quarter of last year. Meanwhile, deposits grew 22.6% year-on-year.

The bank remains well capitalised, with a capital adequacy ratio of 17.5% at the end the quarter, well above the regulatory requirement.