HDFC’s Third Quarter Profit Up By 20.3% to Rs 5,586 crore
Major private sector lender HDFC Bank has reported a 20.3% on-year rise in net profit to Rs 5,586 crore for the October-December period. The lender’s income for the quarter ended December 31, 2018 at Rs 30,811.3 crore grew by 26.0% from ` 24,450.4 crore for the quarter ended December 31, 2017. The bank announced that its net revenues (net interest income plus other income) increased by 23.4% to Rs 17,497.8 crore for the quarter ended December 31, 2018 from Rs 14,183.5 crore in the corresponding quarter of the previous year.
The net interest income (interest earned less interest expended) for the quarter ended December 31, 2018 grew by 21.9% to Rs12,576.8 crore, from Rs 10,314.3 crore for the quarter ended December 31, 2017, driven by asset growth of 23.7% and a core net interest margin for the quarter of 4.3%.
“Other income (non-interest revenue) at Rs 4,921.0 crore was 28.1% of the net revenues for the quarter ended December 31, 2018 and grew by 27.2% over Rs 3,869.2 crore in the corresponding quarter ended December 31, 2017. The four components of other income for the quarter ended December 31, 2018 were fees & commissions of Rs 3,646.8 crore (Rs 2,872.1 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs 397.7 crore (Rs 426.2 crore for the corresponding quarter of the previous year), gain on revaluation / sale of investments of Rs 474.0 crore (Rs 259.4 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries, of Rs 402.6 crore (Rs 311.5 crore for the corresponding quarter of the previous year),” the bank said in a press statement.
HDFC’s operating expenses for the quarter ended December 31, 2018 were Rs 6,719.3 crore, an increase of 17.2% over Rs 5,732.2 crore during the corresponding quarter of the previous year. The core cost-to-income ratio for the quarter was at 39.5% as against 41.2% for the corresponding quarter ended December 31, 2017
