HDFC Bank Q2 net profit up 20% at Rs 3,455 crore, total income also improves

Mumbai: Private sector HDFC Bank on Tuesday reported 20.4 percent jump in net profit at Rs 3,455.3 crore for the quarter ended September 30.

The bank had earned Rs 2,869.5 crore profit in the same quarter of the last financial year.

The banks total income for the July-September quarter of the current fiscal was Rs 19,970.9 crore, up from Rs 17,324.3 crore in the year-ago period.

Gross non-performing assets (NPAs) rose to 1.02 percent of gross advances from 0.9 percent a year ago. The net NPAs also increased to 0.3 percent from 0.2 percent.

As a result, provisions and contingencies for the quarter increased to Rs 749 crore consisting of specific loan loss provisions Rs 640.7 crore and general and other provisions Rs 108.3 crore as against Rs 681.3 crore in the same quarter a year ago.

Net interest income (interest earned less interest expended) for the quarter grew by 19.6 percent to Rs 7,993.6 crore driven by average assets growth of 19.7 percent and a net interest margin for the quarter of 4.2 percent, HDFC Bank said in a statement.

HDFC bank's total capital adequacy ratio (CAR) as per Basel III guidelines, was at 15.4 percent as against 15.5 percent at the end of second quarter of the previous fiscal.

For the half year ended September, the bank's profit rose by 20.3 percent to Rs 6,694.2 crore as compared to Rs 5,565.1 crore in the same period of 2015-16 fiscal.

Total income of the bank also improved to Rs 39,293.5 crore as against Rs 33,827.3 crore in the corresponding period of last fiscal.