India’s HDFC Bank profit up 20% in third quarter

The headquarters of India’s HDFC bank is pictured in Mumbai, Dec 4, 2015. (Reuters pic)

NEW DELHI: HDFC Bank, India’s biggest lender by market value, reported a 20.31% rise in third-quarter net profit on Saturday, lifted by higher interest and fee income.

Net profit rose to a record 55.86 billion Indian rupees (US$785 million) for the three months to Dec 31, from 46.43 billion rupees a year ago, the bank said.

Asset quality was stable, with gross bad loans as a percentage of total loans at 1.38% by the end of December, compared to 1.33% in the previous quarter and 1.29% in the same period last year.

Loans have grown at a quicker pace at private-sector banks, which have grabbed market share from state-controlled lenders that carry the majority of bad loans in India.

HDFC Bank’s total loans at the end of December were 7.81 trillion rupees (US$110 billion), with retail loans up 24.0%.

Its relatively small exposure to the troubled infrastructure sector, which has forced other banks to make profit-denting provisions, has helped HDFC Bank maintain stable asset quality.

Net interest income climbed 21.9%, while net interest margin was at 4.3% for the quarter.