Mumbai, Oct. 12: HDFC Bank — the country’s second largest private sector bank — reported a 30 per cent growth in net profit at Rs 1,559.98 crore in the second quarter ended September 30 on the back of a strong loan growth and a rise in fee income.
The bank had reported a net profit of Rs 1,417.39 crore in the same period of 2011-12. Analysts had expected the lender to report a net profit of Rs 1,550 crore during the period.
HDFC Bank has been one of the few lenders that has been successful in churning out robust numbers despite the economic slowdown and asset quality problems affecting the sector.
“HDFC Bank delivered another robust set of numbers with the bottom line increasing by 30.1 per cent. It has been able to consistently deliver high quality numbers even when the entire industry has been witnessing pressures on the asset quality front and hence the stock has been one of the outperformers in the recent times,” said Vaibhav Agrawal, vice-president research-banking at Angel Broking.
The bottomline growth was driven by a strong growth in advances. HDFC Bank said total net advances as of September 30 were Rs 231,649 crore, an increase of 23 per cent over the same period last year. This led to the bank’s core income called the net interest income (interest earned minus interest paid) rising nearly 27 per cent to Rs 3,731.7 crore during the quarter. A stable net interest margin (interest charged minus interest paid) at 4.2 per cent also contributed to the higher NII.
Even as advances grew, HDFC Bank also benefited from fee income. Income from fees and commissions stood at Rs 1,209.1 crore, a rise of 22.4 per cent over Rs 987.9 crore in the same period last year. This component was a key factor in driving up the other income to Rs 1,345.1 crore (Rs 1,211.7 crore).
On the deposit front, total deposits stood at Rs 274,130 crore, an increase of nearly 19 per cent over last year. During the period, savings deposits grew around 15 per cent to Rs 79,151 crore.