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HDFC Bank thrives on interest fee

Mumbai, Jan. 17: HDFC Bank today reported a robust 25 per cent growth in net profits at Rs 2,325.70 crore in the third quarter ended December, underpinned by a 22 per cent increase in its net interest income.

Net interest income, the difference between interest earned and interest spent, rose to Rs 4,635 crore from Rs 3,799 crore but it was lower than analysts’ estimates.

Analysts had expected the bank to report a net profit of Rs 2,324 crore and net interest income of Rs 4,723 crore.

Other income (non-interest revenues) climbed 11.4 per cent year-on-year to Rs 2,148.3 crore. Total expenses leapt 15 per cent to Rs 8,850.1 crore because of higher other operating expenses.

The bank’s asset quality was stable during the December quarter as gross non-performing assets (NPA) fell 10 basis points sequentially to 1 per cent.

Gross NPAs increased 24 per cent to Rs 3,017.84 crore, while net NPAs surged 60.8 per cent to Rs 797.34 crore.

“Total restructured loans (including applications under process for restructuring) were at 0.2 per cent of gross advances as of December 31, 2013 as against 0.3 per cent as of December 31, 2012,” the bank said in its release.

Total deposits grew 22.9 per cent year-on-year to Rs 3,49,215 crore, which included $3.4 billion deposits raised under the Reserve Bank window for attracting foreign currency non-resident (FCNR) deposits.

Advances rose 22.9 per cent to Rs 2,96,742 crore.

Federal Bank

Federal Bank today reported a jump of 9.1 per cent in net profit at Rs 230 crore in the third quarter ended December 31.

The private bank’s net profit during the same period in the previous fiscal stood at Rs 210.78 crore.

Gross NPA came down to Rs 1,201 crore from Rs 1,466 crore and gross NPA as a percentage of gross advances came down 56 basis points to 2.83 per cent from 3.39 per cent.

The bank’s advances to small and medium enterprises grew Rs 798 crore (8.50 per cent) to Rs 10,184 crore from Rs 9,386 crore on a sequential basis.

 
 
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