Home ›› 16 Oct 2022 ›› Asia Biz
India’s largest private lender on Saturday reported a 20 per cent rise in net profit in the September quarter of this financial year, buoyed by higher loan growth and rise in other income.
Net profit rose to 106.05 billion rupees, beating estimates. Analysts had expected a profit of 105.97 billion rupees, according to Refinitiv IBES data, reports Reuters.
Net interest income, the difference between interest earned and paid out, was at 210.21 billion rupees, a 18.9 per cent jump. Other income grew by 16.7 per cent on the back of improvement in fees and commission and improved foreign exchange and derivatives revenue.
Advances grew at 23.4 per cent with the bank seeing a high pace of growth across all segments including retail, commercial and rural banking and even corporate and wholesale loans.
Deposits grew at 19 per cent, significantly higher than industry wide growth with an uptick seen in both time deposits and current and savings account deposit.
India’s loan growth was at a multi-quarter high of 16.4 per cent year-on-year at September 23, according to the central bank data. A low base, higher retail credit, increased demand for working capital requirement amidst high inflation has helped credit growth to pick up, Care Ratings said.
Meanwhile, deposit growth across the industry has remained comparatively tepid at 9.2 per cent, as per the latest data.
HDFC Bank’ core net interest margin, a key indicator of bank’s profitability was at 4.3 per cent.
