HDFC Bank’s profit jumps 30% in Q1

Boosted by interest and non-interest income.

HDFC Bank Ltd, India’s second largest private sector lender, said first quarter profit grew 30% to US$814 million in the three months ended 30 June from US$239 million as interest and non-interest income rose.

The bank has declared a net profit increase of 30% or more for 40 quarters in the past 10 years.

Net interest income rose 21% to US$745 million. The net interest margin for the June quarter was 4.6%, unchanged from a year ago as both cost of funds and yields on advances fell 10 basis points each.

Other income rose 17% to US$324 million as the bank earned more through fees and commissions and revaluation of investments. NII accounted for 69.6% of the bank’s net revenue.

Total non-performing assets increased to US$458 million in the quarter ended June, up from US$337 million in the quarter ended March 2013, though as a percentage of total loans NPAs remained constant at 1%.

Net NPAs as a percentage of net advances increased 10 bps to 0.30% from 0.20% in the quarter ended March.

HDFC Bank’s loan book grew 21.2% year-on-year, faster than a 13.7% growth in the banking system, mainly because retail loan demand increased 25%, faster than the 16% growth seen in the corporate book.