HDFC Bank Q2 net rise 27% to Rs1,982 crore

HDFC Bank, the country's second-largest private sector lender, has reported a net profit of Rs1,982 crore for the July-September quarter of FY'14, a 27 per cent year-on-year increase compared with the Rs1,560 crore net profit reported in the same quarter last year.

For HDFC Bank, the performance for the July-September 2013 quarter, however, was lacklustre because of the bank's record of posting 30 per cent year-on-year growth in net profit for 54 consecutive quarters.

HDFC Bank attributed the marginal decline in profit to lower-than-expected net interest income and margin, resulting from the Reserve Bank of India's liquidity tightening measures taken since July.

Net interest income, ie the difference between interest earned and interest expended, during the quarter grew 15 per cent to Rs4,476.5 crore from Rs3,882 crore in the same quarter last year, the bank said. Non-interest income increased 25 per cent to Rs 1,844 crore during July-September 2-13-14 against Rs1,472 crore in Q2 FY'13.

Gross non-performing assets (NPAs) of the bank increased to 1.1 per cent of total advances against 0.9 per cent in the second quarter of the previous financial year.

Net non-performing assets were up at 0.3 per cent in the second quarter of the current fiscal against 0.2 per cent in the previous year quarter.

Total advances of the bank grew 16 per cent year-on-year to Rs2,69,000 crore. its retail loan segment grew 17 per cent, while wholesale loans grew 15 per cent. The retail to wholesale loan mix stood at 53:47.

HDFC Bank had total deposits of Rs3,13,000 crore as of 30 September 2013, an increase of 14 per cent over 30 September 2012 levels, while savings account deposits grew 18 per cent.

CASA (current and savings account) ratio stood at 45 per cent.

HDFC Bank said its total capital adequacy ratio as of 30 September 2013 (computed as per Basel III guidelines) stood at 14.6 per cent against a regulatory requirement of 9 per cent.