Mumbai, Feb. 11 (PTI): HDFC Bank has hiked its prime lending rate (PLR) by 100 basis points (bps).

“We have hiked our PLR by 100 bps from 13 per cent to 14 per cent,” the bank’s head (trading), Ashish Parthasarathy, said.

One of the main reasons for increasing the PLR was the cost of funds going up for the bank. This is in line with the trend in the banking industry, he said. With the Reserve Bank of India taking recourse to monetary tightening to combat inflation, cost of funds has increased across the banking industry.

The bank last raised its benchmark prime lending rate by 1.5 percentage points to 13 per cent in December.

Earlier, private sector lenders ICICI Bank and Yes Bank had also hiked their PLRs.

HDFC Bank had posted a 31.7 per cent rise in its third-quarter net profit at Rs 295.6 crore against Rs 224.4 crore in the corresponding period previous year. The total income of the bank for the quarter ended December 31 was Rs 2,132.6 crore, an increase of over 44.5 per cent from Rs 1,475.9 crore achieved during the same period last fiscal.

The net revenue of the bank grew by 34.7 per cent to Rs 1,301.9 crore from Rs 966.7 crore. The net interest income increased by 38.5 per cent to Rs 928.6 crore for the second quarter. This was driven by an average asset growth of 31.6 per cent and an improvement in net interest margin to just over 4 per cent. Other income grew by 26.1 per cent to Rs 373.3 crore from Rs 296.1 crore.

The total balance sheet size of the bank grew by 32.5 per cent to Rs 89,608 crore on December 31 from Rs 67,623 crore on the same day in the previous year.