HDFC Bank net zooms 31.5% in Q2 | business | Hindustan Times
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HDFC Bank net zooms 31.5% in Q2

business Updated: Oct 19, 2011 23:03 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Shrugging off slowdown fears, India's second-largest private lender HDFC Bank, on Wednesday posted a 31.5% year-on-year rise in the net profit at Rs 1,199 crore for the quarter ended September compared with Rs 912 crore in the corresponding quarter last year on the back of healthy growth in interest income and non-interest revenue.

"Indian banking industry is expected to grow in range of 18%-20% in the current fiscal and we expect to grow 3-5 percentages points more than the industry," said Paresh Sukthankar, executive director, HDFC Bank.

The bank's, which gets around 50% of the revenue from retail banking, net interest income (the difference between interest earned and interest paid), grew by 17% to Rs 2,945 crore, driven by the asset growth and a net interest margin (NIM) of 4.1%.

The bank does not expect any significant pressure on its NIMs. "Going forward we expect margins to be in the range of 3.9%-4.2%," said Sukthankar.

Total income rose to Rs 7,929 crore from Rs 5,771 crore in the same period last year, an increase of 37%. Other income increased by 26% to Rs 1,212 crore. Main contributors of the other income were, fees and commissions of Rs 988crore (up 15.3%), foreign exchange/ derivative revenues of Rs 218 crore (up 43% over). Portfolio quality also remained healthy with gross non-performing assets (NPAs) at 1% of gross advances and net NPAs at 0.2% of net advances.